Indonesia's Stock Exchange (IHSG) Plunges into the Red: The Effect of the 2019 Presidential Election Dispute Hearing?

The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) closed in the red on Friday (June 14th). This is despite opening stronger at 6,278.03 points. However, from around 10:00 WIB (Western Indonesian Time) until closing, the JCI plunged to 6,250.26 points.

The JCI's entry into the red coincided with the initial hearing of the Election Result Dispute (PHPU) for the Presidential Election at the Constitutional Court, with Prabowo Subianto and Sandiaga Salahuddin Uno as petitioners. Panin Sekuritas analyst William Hartanto dismissed the notion that the initial hearing of the 2019 Presidential election dispute influenced the JCI's performance. He argued that the verdict will only be read on June 28th, 2019.

The JCI entered the red zone on June 12th, 2019 at 6,276.17 points and again on June 13th, 2019 at 6,273.08 points. Binaartha Sekuritas analyst Muhammad Nafan Aji believes the JCI correction was due to both domestic and global factors. A negative domestic sentiment was the US$4 billion decrease in foreign exchange reserves. Meanwhile, negative global market sentiment stemmed from weakening global economic growth, the US-China trade war, and geopolitical factors such as the potential for crisis in the Middle East.

(Read Databoks: [Indonesia's Second Worst JCI Decline in ASEAN](https://databoks.katadata.co.id/datapublish/2019/05/28/penurunan-ihsg-terburuk-kedua-di-asean))