Profit taking at stock market can be predicted after rally high enough on a few days ago. Stock intervened with action buys that irrational or stimulus by government. Indonesia stock finally returns to normal condition, with action buys by domestic investor and sell action by foreign investor.
This condition of the finance market, without stimulus therefore Indonesia Stock Exchange will continually down. This pressure happening even government had completely give incentive and easy investment. Seemingly investor is still pessimist for the economy prospect.
Government is still reluctant to step in economy reform as one expected by market. Accordingly out flowing net capitol progressively is growing, and it happens at all State emerging market. Estimated this will hit finance market and condition on those State, including Indonesia.
Global economy fall or economy deceleration have regarded all effloresce State. Before Indonesia have steady performance at stock market, now becoming as the worst of some index stock. Indonesia Stock Market’s last data was falling more than 20 percents in this year.
Government has struggled to stops its economic deceleration by undertaking investment deregulation, giving incentive and help in many finance industry. Even the result still undoubted, government should evaluate the policy which is issued gradually, and not to do trial-error for good.
Obviously with evaluation in point will be known, that no stage which efficacious besides reform total economic structure. This matter shall change total budget that actually have so long in disfavors with market. Even budget had minim subsidize to divide energy, but is still place fiscal condition in risks.
Government is still imitating policy of the previous government. This one make trapped government in fast economic deceleration. Eventually with same condition, India has successfully manage the deceleration pressure. There are many investment which is adrift swift go to India, defeat Indonesia. As State same emerging market, India has successful in creating economic policy to attract investment.