Indonesian stocks dive as Jakarta again plans to partially lock down the corona virus

Passengers wearing safety masks on August 18, 2020 at Dhana Apang Railway Station in Jakarta, Indonesia.

Adek Berry | AFP | Getty Images

SINGAPORE – Indonesian shares fell about 5% on Thursday following the announcement that the capital Jakarta would re-establish locking measures to reduce the spread of the corona virus.

Decline in scale Jakarta Mixed Table Stood in contrast Profits found in most markets across Asia Pacific. This is the worst performing index in the region so far this year, down 18% as of Wednesday close, compared to a 3.2% gain on the MSCI All-Asia Asia ex-Japan index.

The fall occurred on Thursday, a day after Jakarta Governor Anees Paswaden said he would return Rethink large-scale movement controls An increase in Govt-19 cases from next Monday could sink the city’s health system, Reuters reports. Jakarta has been under partial locking since April, but operations have been reduced since June.

According to Reuters, restrictions such as the temporary closure of offices, restrictions on public transport and restrictions on eating in restaurants, except in “essential” areas, will remain the same as previously imposed.

Jakarta, a city of more than 10 million people, has been the epicenter of the Kovit-19 eruption in Indonesia, which accounts for almost a quarter of the country’s total epidemics. According to government data, more than 1,000 new cases are reported daily in the city for most of this month.

Indonesia has more than 200,000 cases, second only to Southeast Asia after the Philippines, but more than 8,000 deaths in the region, according to data compiled by Johns Hopkins University.

Helmi Arman, an economist at City Research, said Jakarta’s plans to tighten controls would “draw attention back to Indonesia’s major economic and financial risks.”

“The economic impact of restructuring any restrictions will depend on the details of the plan and how strictly the new rules are being implemented on the ground,” he wrote in a Wednesday note.

The largest Indonesian economy in Southeast Asia has been badly affected by the epidemic. Its gross domestic product It fell 5.3% in the second quarter Compared to a year ago – the first economic contraction since 1999.

Harold Manning

"Infuriatingly humble social media ninja. Devoted travel junkie. Student. Avid internet lover."

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