With the presidential election of Indonesia (scheduled for 9 July) becoming a battle between Governor of Jakarta Joko Widodo, popularly known as Jokowi, and former army general and Suharto crony Prabowo Subianto, it is worth taking a closer look into the ideas and policies that both candidates would like to implement if elected as the next Indonesian president, as well as their stance on specific economic issues. The viewpoints that are mentioned below are based on the documents that both parties provided to the General Election Commission.

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After Joko 'Jokowi' Widodo and Jusuf Kalla announced earlier today (19/05) to form a pair in the upcoming Indonesian presidential election (scheduled for 9 July 2014), supported by a coalition consisting of the PDI-P, NasDem, PKB and Hanura, the other pair also presented itself. Prabowo Subianto officially announced that Hatta Rajasa will be his running mate in the election. This pair is backed by Gerindra, PAN, PPP, PKS and Golkar. At the last moment Golkar, second-largest party in the April legislative election, decided to join this coalition.

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In front of the Joang '45 Museum, which illustrates Indonesia's battle for independence, Joko "Jokowi" Widodo (Governor of Jakarta) officially declared that Jusuf Kalla is his running mate (or the vice-presidential candidate) in the upcoming presidential election (scheduled for 9 July 2014). It had been speculated for weeks that Jusuf Kalla (former Indonesian Vice-President, businessman and philanthropist), would be Jokowi's running mate but it was only officially declared just after noon (local Jakarta time) on Monday (19/05).

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Although we are still waiting for the official announcement (which is expected to follow shortly), more and more signs are pointing towards the nomination of Jusuf Kalla as the running mate (or vice-presidential candidate) of Jakarta Governor Joko "Jokowi" Widodo in the presidential election that is scheduled for 9 July 2014. The pair will have the full support of the PDI-P, NasDem, PKB and Hanura coalition. The chairmen of the NasDem (Surya Paloh) and PKB (Muhaimin Iskandar) have reportedly confirmed that Kalla will be the running mate.

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Both the Indonesian rupiah exchange rate and the country's benchmark stock index (known as the Jakarta Composite Index or IHSG) have strengthened significantly on Wednesday's trading day (14/05). The rupiah appreciated 0.76 percent to IDR 11,450 per US dollar by 15:00 local Jakarta time according to the Bloomberg Dollar Index. Meanwhile, the IHSG gained 1.09 percent to 4,975.13 by the same time. Main reason for this strong performance is the official declaration of the PDI-P to form a coalition with NasDem and PKB.

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The Indonesian presidential election, scheduled for 9 July 2014, is most likely to become a battle between Joko "Jokowi" Widodo and Prabowo Subianto. Although this had already been expected as both men can rely on popular support (according to various surveys) and have the political backing of important political parties, a number of developments on Tuesday (13/05) seem to confirm this expectation. Moreover, there is more clarity about the vice-presidential candidates that will join the July election.

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In Indonesian media it was reported today (13/05) that Hatta Rajasa, the current Coordinating Minister for Economic Affairs, will meet President Susilo Bambang Yudhoyono this afternoon. It is speculated that in this meeting Rajasa wil ask permission to resign from his post in order to be able to run as Prabowo Subianto's running mate in the presidential election (9 July 2014). A 2008 law stipulates that ministers need to resign when participating in the election (as presidential or vice-presidential candidate) to avert a possible conflict of interest.

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Indonesian newspaper Investor Daily reported that on Friday 9 May 2014 Joko Widodo, the presidential candidate of the PDI-P (winner of the April 2014 legislative election), will announce his running mate for the presidential election. According to the newspaper, Surya Paloh - founder of the NasDem party - said that the running mate (vice-presidential candidate) has already been agreed upon although he declined to mention a name. The PDI-P and NasDem formed a coalition last month in order to nominate a presidential candidate.

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After the Indonesian Democratic Party of Struggle (PDI-P), winner of the 2014 legislative election of Indonesia, was reported to have formed an alliance with the NasDem party in order to nominate a presidential candidate for the presidential election that is scheduled for 9 July 2014, both the National Awakening Party (PKB) and the United Development Party (PPP) have also been approaching the PDI-P. Reportedly, the PKB has mentioned two candidates to the PDI-P to become Joko Widodo’s running mate in the election.

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Although Indonesia's benchmark stock index (known as the Jakarta Composite Index or IHSG) fell immediately after its opening on Monday (28/04), the index is expected to strengthen this week as Joko 'Jokowi' Widodo will announce his running mate for the 2014 presidential election. Jokowi is the presidential nominee of the PDI-P party (the largest opposition party in the Indonesian parliament), which won the legislative election in April 2014 by securing about 19 percent of the popular vote.

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One day ahead of the official result of the Indonesian presidential election, the benchmark stock index of Indonesia (known as Jakarta Composite Index or IHSG) showed a good performance as market participants seem to speculate not only on a Joko Widodo win, but also on a peaceful and orderly course of events (no large scale demonstrations or riots). On Sunday, president Yudhoyono received both presidential candidates at the State Palace for dinner. This may have helped to cool some of the tension between supporters of both sides.

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Despite China’s positive economic growth of 7.5 percent in the second quarter of 2014, most Asian stock indices were down. Only Hong Kong's Hang Seng Index (HSI) managed to show a slight gain as large cap stocks were sought after. The HSI impacted positively on the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) on Wednesday (16/07) which climbed 0.85 percent to 5,113.93 points on Wednesday (16/07). Foreign investors recorded net buying.

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Most Asian stock indices were up on Tuesday (15/07) influenced by rising indices on Wall Street and in Europe on the previous day. Also for investors on Indonesia’s benchmark stock index (Jakarta Composite Index) this meant an opportunity to engage in stock trading even though the Indonesian rupiah exchange rate depreciated considerably and political uncertainties remain (as the winner of the Indonesian presidential election remains a question mark). In fact, investors were confused to see the Merah Putih coalition.

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Although the benchmark stock index (known as Jakarta Composite Index or IHSG) started the day in the green zone, it ended down due to profit taking as market participants prefer to wait for the official result of the Indonesian presidential election first. Both presidential candidates (Joko Widodo and Prabowo Subianto) declared a victory based on different unofficial quick count results. This has resulted in political uncertainty in Southeast Asia’s largest economy and thus investors refrain from buying Indonesian assets.

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The Indonesian rupiah exchange rate depreciated 0.67 percent to IDR 11,665 per US dollar on Monday (14/07) according to the Bloomberg Dollar Index. Meanwhile, the benchmark stock exchange of Indonesia (Jakarta Composite Index) declined 0.23 percent to 5,021.06 points. The main reason for weakening markets in Indonesia is investors’ wait & see attitude ahead of the official result of Indonesia’s presidential election. On 22 July 2014, the General Elections Commission (KPU) will announce the winner of the election.

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Initially we were concerned that Indonesia’s benchmark stock index (Jakarta Composite Index) would experience a sudden change of direction - after two days of strong gains at the start of the week - because the preliminary results of the 2014 Indonesian presidential election (based on unofficial quick counts) was mixed at first glance and thus triggers political uncertainty (something which is seriously disliked by investors). However, the index performed remarkably well and rose 1.46 percent to 5,098.11 points on Thursday (10/07).

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As had been predicted previously by various popularity surveys, the outcome of the Indonesian presidential election, a race between Joko Widodo (known as Jokowi) and Prabowo Subianto, was close. In fact, after the unofficial yet reliable quick count results had been collected, both camps claimed a victory. However, the majority of the quick count results show a Jokowi victory with a margin of about five to six percentage points. On 22 July 2014, the Indonesian General Elections Commission (KPU) will announce the official result.

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On Tuesday (08/07), both the Indonesian rupiah exchange rate and stocks continued where they left off yesterday. Supported by optimistic market participants speculating on a Joko Widodo victory in Wednesday’s presidential election, the rupiah appreciated 0.74 percent to IDR 11,626 per US dollar based on the Bloomberg Dollar Index, while the country’s benchmark stock index (Jakarta Composite Index) rose 0.72 percent to 5,024.71 points, surpassing the psychological level at 5,000 and approaching its record high level at 5,215 (21 March 2013).

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Although Asian stock indices tended to decline on Monday’s trading day (07/07) due to profit taking amid expectation that corporate earnings in the first half of 2014 are disappointing, the benchmark stock index of Indonesia (known as Jakarta Composite Index or IHSG) performed remarkably well as foreign investors recorded net buying and the Indonesian rupiah exchange rate appreciated sharply. The main reason why markets were positive in Indonesia on Monday was the strong performance of Joko Widodo in Saturday’s presidential debate.

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The Indonesian rupiah exchange rate appreciated sharply on Monday (07/07) due to the strong performance of presidential candidate Joko Widodo (Jokowi) in the presidential debate with rival candidate Prabowo Subianto last Saturday evening. Indonesian media declared Jokowi the winner of the debate because of his confident, eloquent and well-structured performance. This debate, in which the candidates were joined by their running mates, was the fifth and final one ahead of the presidential election on Wednesday 9 July.

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