The Indonesian Stock Exchange (BEI) sees the strengthening of composite index as a sign that market players have responded positively to the cabinet reshuffle announced by President Joko Widodo (Jokowi) on Wednesday.

“The BEI composite index has today (Wednesday, July 27) surged. Its probably a reflection of the positive response of market players to the reshuffle. Some investors began to position themselves to enter the market,” Samsul Hidayat, company appraisal director of the BEI, said here on Wednesday.

He expressed his optimism that the second reshuffle would better stimulate the realization of the governments economic packages and would finally boost the BEI composite index.

In the meantime, Research Head of the Indonesian University of Brokers, Satrio Utomo, noted that the appointment of Sri Mulyani as the new finance minister has elicited a positive response from the stock market players in the country.

She is expected to further carry out the governments tax amnesty program, he added.

Chairperson of the Indonesian Association of Securities Companies (APEI) Susy Meilina remarked that the naming of Sri Mulyani as finance minister was one of the factors boosting the BEI composite index.

“As soon as she was installed, the sentiment was positive. The capital market likes her,” she pointed out.

The BEI composite index at the close of the first session was up 69.47 points or 1.16 percent, reaching 5,284.87, while LQ45 index was up 11.898 points or 1.32 percent to reach 914.09.

Yesterday, President Joko Widodo announced a new cabinet lineup that included Sri Mulyani back in her old position as finance minister.

Previously, Sri Mulyani was World Bank’s managing director and chief operating officer.

Her former positions included finance minister and coordinating minister for economic affairs during the administration of the then president, Susilo Bambang Yudhoyono.

Source: antaranews