JAKARTA (Yosefardi) – Composite index of the Indonesia Stock Exchange (IDX) fell further 0.16% to 5078 this morning on concern over the subsidized fuel price hike.
The government plans to raise the fuel prices this month by as much as Rp2,000-3,000 per litre.
President Joko “Jokowi” Widodo has on Monday (November 3) officially launched the government’s signature welfare programs through the so-called Prosperous Family Card (KKS), the Indonesia Health Card (KIS), and the Indonesia Smart Card (KIP).
This might be meant as a compensation for poor people as the government opts to skip the fuel subsidy.
Regional market were also mostly in red to tracking Wall Street on concern over the oil price drop which prompt the selloff in energy shares.
While the Japanese equity barometer rallied above 17,000 for the first time in seven years as traders cheered BoJ stimulus measures.
Nymex’s crude oil fell 0.57% to US$78.39 per barrel in Asian trading and gold declined 0.42% to US$1,164.90 per ounce.
At Jakarta bourse, Adaro Energy fell 1.3%, Bank Negara Indonesia declined 1.26%, Bumi Resources shed 2.94%, BW Plantation slipped 1.82%, and London Sumatra lost 1%.