Foreign investors fear of political uncertainty
Jakarta: Indonesians casted their votes in parliamentary elections held simultaneously across the nation. PDI-P party is leading but below the 27 per cent target the party set for itself. Consequently, it will have to build a coalition to nominate its presidential candidate. Indonesia voted to choose 560 members of the House of Representatives (DPR), 132 members of Regional Representatives Council (DPD) at the national level, 2,112 members of provincial legislative assembly, and 20,257 members of the district/city legislative assembly. This year, 15 political parties, of which 12 are national and three are local, are participated in the elections.
Indonesia will hold the presidential election July 9, with a run-off election in September if no presidential candidate gets more than 50 per cent of the vote. Thus for many, the poll was less about voting for an individual and more about supporting a specific party to help boost the chances for their favourite candidate in the July 9 presidential election. Reports suggest that International markets were clearly surprised by the legislative election results.”The market reacted negatively to the news because the players already expected Jokowi and the PDI-P to win by a landslide,” said Eric Sugandi, economic analyst at Standard Chartered Bank.This political uncertainty will effect psychologically on the stabilization of market.