Indonesian shipping company Soechi Lines targets to raise IDR 2 trillion through an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) in November 2014. The company will release 2.6 billion shares, 30 percent of its enlarged capital, to the public. General Director of Soechi Lines, Go Darmadi, said that shares will be offered at a price of between IDR 600 and 800 per share. Half of the proceeds will be spent on capital expenditure (capex), while the remainder will be used for debt repayment and operational costs.

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Although stock indices on Wall Street were up on Thursday (23/10) on strong corporate earnings (including Caterpillar and 3M) and economic data (US hiring as well as business’ surveys in Europe that suggest the region may avoid slipping back into a recession), it failed to push emerging market stocks higher on Friday (24/10). Indonesia’s benchmark stock index fell 0.60 percent to 5,073.07. Meanwhile, the Indonesian rupiah exchange rate depreciated 0.05 percent to IDR 12,069 per US dollar (Bloomberg Dollar Index).

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Indonesian stocks, bonds and the rupiah exchange rate performed well ahead of - and during - the inauguration of Joko Widodo (Jokowi) as Indonesia’s seventh President on Monday morning (20 October 2014). At 10:45 am local Jakarta time, when Jokowi was making his speech in front of the People's Consultative Assembly (MPR), the Jakarta Composite Index had surged 1.36 percent to 5,097.25 points, while the rupiah had appreciated 0.78 percent to IDR 12,015 per US dollar according to the Bloomberg Dollar Index.

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Indonesian stocks and the rupiah exchange rate strengthened considerably on Friday (17/10) due to speculation that president-elect Joko Widodo will raise prices of subsidized fuels soon after his inauguration as Indonesia’s seventh President on Monday 20 October 2014. Furthermore, a meeting between Widodo and powerful opposition leader Prabowo Subianto on Friday morning also managed to ease concerns about political stability in Southeast Asia’s largest economy. Lastly, rising indices on Wall Street added positive market sentiments.

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Both the Indonesian rupiah exchange rate and Indonesian stocks weakened sharply on Wednesday (08/10) due to internal and external factors. Externally, weakening stock indices on Wall Street on Tuesday (07/10) have a severe negative impact on the performance of Asian stocks today. Wall Street was down on the IMF’s downward revised outlook for global GDP growth in 2014 and 2015, as well as on Germany’s industrial production, which fell the most in five years in August 2014.

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The Indonesian rupiah exchange rate depreciated sharply on Monday (29/09) due to the market’s reaction against parliament’s passing of a bill that ends direct elections in the regions. On Friday (26/09), parliament agreed that mayors, district heads and governors will be elected by local legislatures instead of the people. Critics say this bill is a major setback for democracy and makes the system more vulnerable to corruption. Last Friday, investors had already pulled USD $119 million from Indonesian shares.

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The most controversial and heatedly debated news story from Indonesia in the past week was parliament’s approval of a new bill that puts an end to direct voting in the regions. This means that it are not the people but instead the regional legislatures that will elect mayors, district heads and governors. Critics say this is a major setback for the democracy process of Indonesia and will make local elections prone to corruption, collusion and nepotism as Indonesia’s legislatures - both at the national and regional level - are believed to be corrupted to a high degree.

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Indonesian stocks and rupiah exchange rate weakened considerably on Friday (26/09) after Indonesian parliament approved a new bill that puts an end to direct local elections. Moreover, market sentiments were negative after stocks on Wall Street plunged on Thursday because of increasing concern about the global economy as well as consumers’ problems with Apple's latest software updates and new product launches (iPhone 6 and iPhone 6 Plus) resulting in a 3.8 percent slide of Apple shares.

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The benchmark stock index of Indonesia (Jakarta Composite Index, or IHSG) may reach a new record high level this week after market favourite Joko Widodo - popularly known as Jokowi - was officially announced the winner of the 2014 presidential election by the General Elections Commission (KPU) on Tuesday (22/07). Not unimportantly, the final decision was not accompanied by any riots or social unrest Jakarta or other parts of the Archipelago, thus giving investors some more peace of mind regarding the stability of Indonesian assets.

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The performance of the Indonesian rupiah exchange rate and stocks has been impacted by defeated presidential candidate Prabowo Subianto’s withdrawal from the General Elections Commission’s electoral process on Tuesday (22/07). Although the Commission (KPU) has not publicly announced the outcome of the 2014 presidential election yet, Subianto’s response is a clear sign that rival Joko Widodo - as expected - has won the election. Subianto claims that the KPU is corrupt and will challenge the outcome in the Constitutional Court.

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The benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) climbed slightly on Monday (18/08), not being impacted - as we feared earlier - by mixed stock indices on Wall Street and Europe on Friday (15/08). Increased speculation about widening Chinese monetary policy in the country’s property sector made a good impact on Asian stock indices, including Indonesia’s IHSG. At the end of the trading day, the IHSG had strengthened 0.15 percent to 5,156.75 points, also supported by the appreciating rupiah (Bank Indonesia’s mid-rate).

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Weakening global stock indices meant that it would be difficult for the benchmark stock index of Indonesia (Jakarta Composite Index or IHSG) to continue its upward movement on Tuesday (05/08). Moreover, there were few positive sentiments originating from the Archipelago as Indonesia’s Q2-2014 GDP growth (+5.12 percent year-on-year) was below expectation and the country’s trade balance showed a deficit of USD $300 million in June 2014. Meanwhile, the Indonesian rupiah exchange appreciated slightly.

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Indonesian stocks and the rupiah exchange rate showed great volatility on Tuesday’s trading day (22/07). In the first part of the day the benchmark stock index of Indonesia (known as Jakarta Composite Index of IHSG) and rupiah strengthened on speculation that market favourite Joko “Jokowi” Widodo would win the presidential election without riots or other incidents that could trigger political uncertainties. On Tuesday evening, the General Elections Commission (KPU) indeed officially declared Jokowi the winner of the election.

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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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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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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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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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Although the benchmark stock index of Indonesia (known as Jakarta Composite Index or IHSG) was in the red zone prior to the release of Indonesia’s June inflation figure and May trade data, at the end of the day it finished slightly in the green zone. The IHSG climbed 0.13 percent to 4,884.83 points. The macroeconomic data that were released were positive and made market participants engage in stock trading. Moreover, the index was supported by Asian stock markets that were mostly up as well as the appreciating rupiah exchange rate.

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Despite Hong Kong’s falling Hang Seng Index (HSI), the benchmark stock index of Indonesia (known as the Jakarta Composite Index or IHSG) managed to climb 0.69 percent to 4,878.58 points on Monday (30/06). A number of reasons can be cited that positively influenced the performance of the IHSG. These are higher US Michigan Consumer Sentiment, positive forecasts for tomorrow’s release of June inflation and the May trade balance of Indonesia, declining global oil prices and the appreciating Indonesian rupiah exchange rate.

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