Behind a great man there is a great woman. Behind a great nation there is a great woman. Indonesian Finance Minister Sri Mulyani is a figure who aligned with the women who brought the world changes. Although less received an award in the domestic Indonesian market, she was proved to be a very loving mother.
In trading yesterday (05/05) the stock market seems to mourn Sri Mulyani decision to resign from his post as Minister of Finance and moved its office as a Managing Director at the World Bank headquarters in Washington DC.
Indonesian stock market experienced the biggest decline in 17 months later in trading yesterday. Until the first session this day was observed to the main index JCI continued decline of 2:11%. Indonesian stock market recorded the biggest decline among other bourses in Asia. Markets worry about the risks of fiscal policy decisions following the resignation of Finance Minister Sri Mulyani, who is the best finance minister in Asia.
According to market analysts resignation Sri Mulyani factor that coincides with plunging global stock markets on worries about Europe’s economic conditions became the driving factor for the action of selling shares in the bourse. The concern about the resignation of Minister of Finance is primarily about the continuation of current fiscal policy is applied.
Participate in Local Currency Becoming Victims
Rupiah, which had sped past in April was also observed when hit by indiscriminate selling helpless. In Thursday’s trading the exchange rate seems to have the biggest decline since November 2009. Momentum of the dollar due to the Greek crisis, plunging domestic stock market and the withdrawal decision as finance minister Sri Mulyani has given a barrage of pressure to the movement of the Indonesian currency against the U.S. dollar.
Bureaucratic reform, particularly in the body of the Ministry of Finance of Indonesia is highly appreciated by market participants. Sri Mulyani lost figures as the initiator of reform in the Department feared that making the current process loses momentum. This is considered very unfortunate for the market players and business.
Meanwhile, concerns about economic conditions in Europe again hit after Moody’s Investors Service said it will consider the credit rating status in Portugal. Previously Greece face problems domestically due to budget cuts protests in the capital city of Athens took casualties. These conditions make the euro slumped and the dollar strengthened.