Investors awaiting final decision on presidential election

Investors awaiting final decision on presidential election

The landscape of Jakarta from the height. (ANTARA FOTO/Andika Wahyu)

... investors believe the condition of political uncertainty would soon be over... "
Semarang, Central Java (ANTARA News) - Share investors are awaiting the final decision of the Constitutional Court on the result of the July 9 presidential election , an analyst said.

Investors are spending the long Idul Fitri holidays waiting for the decision to be announced to create political certainty, a branch manager of securities company PT Danareksa Sekuritas in Semarang Melcy RS Makarawung said on Tuesday.

Prabowo, the losing candidate contesting the election had filed a lawsuit with the Constitutional Court against the decision of the Election Commission.

Prabowo accused the Commission of being unfair saying there were massive rigging of the election in favor of rival candidate Joko Widodo.

Melcy said the share prices tend to decline in August because of the start of academic year especially with the Islamic holy day celebrations .

However, he described the market trend as positive and foreign investors who make up 60-65 percent of the investors in the domestic market believed the final result of the election would be as expected by the market.

"The investors believe the condition of political uncertainty would soon be over," he said

He said the composition of the cabinet would also has its impact on the market trend as the composition would determine the government policy.

"Among a number of crucial issues that need serious addressing by the new government include the plan to raise the electric tariff and price of subsidized oil fuels.

"Investment would be safe if the impact of the price hike could be controlled." he said.

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