Investors Reactions Mixed After the Cabinet's Announcement - Photo: Special

JAKARTA (TheInsiderStories) – Indonesian Rupiah slightly down 0.09 percent to 14,025 against US Dollar after the announcement of new cabinet. But, the Jakarta Composite Index jumped 0.52 percent to 6,257.81 compared to yesterday.

The economist said some investors was seen disappointed to the new cabinet members. Bhima Yudhistira, an economist at the Institute for Development of Economics said, “Foreign funds also fled from the capital market of Rp121 billion (US$8.63 million) after the minister’ announcement.”

He adds, some investors were disappointed with the new Widodo’ cabinet. The reason, because the ministers will not make a breakthrough until the end of their term.

Yudhistira rated, Airlangga Hartato, was not the right person to fill the strategic position as the senior economy minister, because he is coming from the political parties. During his term as the industry minister, Hartarto did not make a brilliant achievement, he adds.

Hartarto is considered to have failed to suppress the rate of deindustrialization. Also, the manufacturing growth rate of 3.54 percent is far below the economic growth of 5.05 percent.

Nevertheless, Yudhistira still has a bit of optimism with the re-election of Sri Mulyani Indrawati as finance minister. Former managing director at World Bank, is considered to be able to communicate with investors and entrepreneurs.

“Without Sri Mulyani, the credibility of the cabinet could plummet,” he explained.

While, chief executive at Financial Service Authority (FSA), Hoesen, assessed ministers under President Joko Widodo’ to be able work professionally even many of them has background from politics. “In my opinion, whoever filled the position as long as able to work professionally, it will not be problem,” he said.

The official also hoped that the synergy between the ministries and the FSA will continue and the Indonesian financial market could grow faster. On Wednesday, Widodo announced the new cabinet, consisted of 32 ministers and six minister-level officials. There are 22 professional in the cabinet and others from the coalition parties.

US$1: Rp14,025

Written by Staff Editor, Email: theinsiderstories@gmail.com