On one hand, after seeing a long decline, greenery is finally being seen in the Indian stock market, on the other hand, there is a sudden chaos in the stock market of a country.

We are talking about Indonesia, where the Jakarta Composite Index suddenly fell by about 5 percent, after which there was a stir among the investors. Here the biggest decline has been seen in the shares of companies related to the healthcare sector. Let us know about the reasons behind this earthquake in the Indonesian stock market…

Jakarta Composite crashed as soon as it opened

On Monday, some Asian markets saw sluggishness amid mixed global signals, but during this time the condition of Indonesia’s market was seen in bad shape. The effect of increased fear among investors about the already deteriorating Indonesia Economy was seen on the market and the country’s Jakarta Composite Index slipped 4.7% with a sharp decline. In the Bloomberg report, the reason behind this decline is believed to be the economic policies under the leadership of President Prabowo.

There was a big decline last week too
The atmosphere of concern about the Indonesian economy is not of today, but has been troubling investors for a long time. Earlier on Tuesday last week, the Indonesia Stock Market slipped badly and the biggest decline in more than a decade was recorded. Along with the weak economy, the continuous decline in consumer spending has affected the sentiment of investors.

On Tuesday, the Jakarta Composite Index fell by 7.1%, which was the biggest intraday decline in it since September 2011. Due to this decline, trading in the stock market also had to be stopped. There was no trading in the stock market for about 30 minutes. Let us tell you that such a situation has been seen for the first time after the Corona period. The collapse of the Indonesian currency against the dollar also played an important role in this decline.

Concerns about the country’s financial health
In a related report on the South China Morning Post, economists have cited several factors for the sharp fall in share prices. These include concerns about the country’s financial policies and economic outlook. There is also speculation that Finance Minister Mulyani may resign from Prabowo’s cabinet. According to Permata Bank’s Chief Economist Joshua Pardede, all these things are increasing uncertainty among investors from a policy point of view. The effect of which is also visible on the stock market.