The increase in the Palace Denies JCI as "Jokowi Effect"

The strengthening of the Indonesian economy lately , which is characterized by the strengthening of the Jakarta Composite Index ( JCI ) and the exchange rate , not at all related to the sentiment of market participants to the figure of the presidential candidates ( candidates ) that carried certain parties participating in the General Election ( Election ) . But more due to the stronger economic fundamentals Indonesia as a result of a series of policy packages that have been issued by the government .

This was conveyed by Special Staff of the President for Economic and Development Firmanzah , responding to the views of various circles that connect the appearance of the figure of the presidential candidate of a particular party as the cause of economic empowerment in Indonesia in recent times .

As quoted from the official website of the Cabinet Secretariat , Monday ( 14/04/2014 ) , Firmanzah argued , economic actors are rational actors who continue to base cost-benefit decisions based on things that are fundamental .

"Therefore , when a country's economic fundamentals deteriorate , engineering sentiment in the market will not be effective for example to convince investors to invest in both the stock market and real sector , " he explained .

Professor of the Faculty of Economics, University of Indonesia , said in the capital markets and financial markets , the relatively high sensitivity to sentiment when compared to the real sector . But he cautioned , if seen in the spectrum is longer , the movement of capital and financial market performance will run in line with the movement of economic fundamentals .

Firmanzah then pointed to the example , in the second half of 2013, when the issue of the reduction of monetary stimulus to - III ( quantitative easing III ) delivered by the Fed coupled with export - import imbalance between national make - sentiment capital outflow increases . As a result, JCI and the rupiah weakened against the dollar .

However, when Indonesia was able to fix the fundamental aspects of the economy such as the movement to tame inflation , create a trade surplus , increasing foreign exchange reserves and keeping the economic growth at the end of 2013 , then there is a positive trend in the stock index and the movement of the exchange rate in the first - quarter of 2014.

" That is , although shaken role in the short term , in the medium and long term the market will build positive sentiment by strengthening trend of national economic fundamentals , " said Firmanzah .

Firmanzah admitted , may rise and fall of the JCI movement and instantaneous exchange rate is affected by an event , but he believes the market will look back on the things that are fundamental economics .

For example , Firmanzah show , after the announcement of the results of the quick count , JCI at the close on Thursday ( 10.04.13 ) fell by 3.16 per cent or 115.68 points and was at 4765.73 levels . But the next day , JCI gained since market opening and closed up 1.07 per cent to 4816.58 , and is expected to rally to JCI strengthening trend throughout this week and can touch the level of 4900 .

" So , regardless of the number of claims of better candidate JCI and the exchange rate lately , things that can not be denied is the growing strength of Indonesia's economic fundamentals are what make the movement a positive trend since the beginning of 2014 in the financial markets , " said Firmanzah .

Previously , Joko Widodo promoted as a presidential candidate PDI touted affect the Indonesian economy , especially financial markets , aka " Jokowi Effect " . It is seen as he announces as a candidate PDI - P on March 14 , where the stock index surged by 152 points instantly through the level of 4800 , and the rupiah rose to 11,200 per U.S. dollar range . ( Read : Jokowi : I Will Often to let Stock Index Up )

While post quick count results showed a number of survey institutes PDI - P did not managed to penetrate 20 percent , the market immediately responds by plunging stock index and exchange rate. Despite being in first place , while the sound of quick count results PDI P is considered not as expected previously called - called could reach 27 percent . ( Read also : If Jokowi It Forward candidates , market slumped more )