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Jakarta, 9 Nov 2009 – Cancellation Gita Wirjawan inauguration as head of the Investment Coordinating Board (BKPM) for the second time in the United Indonesia Cabinet structure II can be considered a bad signal to the market.

Economic BNI Prasetyantono Toni said, cancellation of appointment of the head of BKPM’s not good for the market. “I will guess the market is wrong. This could reduce the positive sentiment that was already awake when SBY won the election properly,” he said, Monday (11/11). Not only that, the cancellation until the second time the head of BKPM also be a signal that the president is less decisive.

As known, the first Gita BKPM head off into the structure of United Indonesia Cabinet II on October 20
2009. At that time, the Presidential Decree About Rapture Former President Director of JP Morgan Securities Indonesia is the Head of BKPM not yet finalized.

Overshadowed chaotic-Police Commission, muscular Morning Rupiah
Exchange rate of rupiah against the U.S. dollar in the Jakarta interbank spot market on Monday (9 / 11) morning rise as market players bought the local currency, although there are concerns about the case between the National Police Commission is still ongoing to this day.

The rupiah against the dollar rose 35 points to USD 9405-USD 9415 per dollar, compared to the closure last weekend USD 9440-USD 9455.

Currency analysts PT Bank Association of Civil Tbk, Rully Nova in Jakarta, Monday said the rupiah increase its active support of foreign players playing in the market. The entry of ‘hot money’ foreigners in the domestic market triggered the rupiah strengthened to close to USD 9400 per dollar.

“But the Commission and Porli cases that continue rolling until now causing concern for foreign players to invest more funds in the domestic market, because these events tend to run long enough,” he said.

For now, market confidence was still positive for financial markets, because the macro economic fundamentals Indonesia is still quite good, even the country’s foreign reserves grew.

But foreign players continued to make observations on the various cases that occur in countries such as Century Bank case which has been renamed the Pearl Bank, has received an injection of funds from the Deposit Insurance Agency (LPS) of Rp 6.7 trillion.

This case has received attention from the House of Representatives asked the Commission to immediately resolve the problem. Therefore, according to him, if the case can not be completed, fear the rupiah will be back slumped, because foreign investors will leave the domestic market.

The role of foreign investors is very large, they have a strong capital market to shake.