Indonesia’s stock market dropped 2.36% last week, paring the previous week’s gain, after data showed the decline in auto sales after the government imposed higher down-payment regulation. For the week, the Jakarta Composite Index (JCI) lost 104.108 points, or 2.36%, to close at 4,305.912. Shares of Astra International (ASII) fell as much as 5.19% on Thursday after industry data showed motorbike sales in Indonesia fell about 12% in 2012 from a year earlier after the government imposed higher down payment requirements for auto purchases in June. Commodity and industry sectors also weighed on the JCI last week, with the miscellaneous industry sector lost 6.09%, agriculture sector fell 4.63%, and trade and services sector dropped 3.13%. LQ45 – the index trailing Indonesia’s blue-chip stocks – shed 21.997 points, or 2.92%, to close at 731.879.More than 180 shares declined, 123 shares advanced, and 158 shares stayed unchanged last week on the Indonesia Stock Exchange, where 19.889 billion shares worth IDR 21.431 trillion traded on the regular board. Foreign investors accumulated net purchases worth IDR 786.05 billion in total.
From the economic front, Indonesia's central bank kept its benchmark policy rate unchanged as expected on Thursday (10/01), at a record low of 5.75% for the 12th month, with inflation relatively low and economic growth still strong despite global weakness. December annual inflation softened to 4.3%, from 4.32% a month earlier, well within central bank's target range of 3.5%-5.5% last year. The government expected the economy to expand by 6.3% in 2012 on buoyant domestic demand and investment. However, weak demand from major trade partners have hit the country's exports, resulting in a trade deficit of USD 480 million in November.
From the economic front, Indonesia's central bank kept its benchmark policy rate unchanged as expected on Thursday (10/01), at a record low of 5.75% for the 12th month, with inflation relatively low and economic growth still strong despite global weakness. December annual inflation softened to 4.3%, from 4.32% a month earlier, well within central bank's target range of 3.5%-5.5% last year. The government expected the economy to expand by 6.3% in 2012 on buoyant domestic demand and investment. However, weak demand from major trade partners have hit the country's exports, resulting in a trade deficit of USD 480 million in November.