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  • Writer's pictureICMSS

JCI’s Week Off Halts Its Upswing

The Jakarta Composite Index (JCI) has stopped moving from Monday, June 3rd until Friday, June 7th as Indonesians celebrate Eid Al-Fitr and the market closes for the week and will begin to open on Monday (10/6). In relation, JCI in their last day of operations on Friday (31/5) before the Eid Al-Fitr week was steadily improving and closed for 1,72% to the level of 6.209,12. As the financial index stopped moving, it was projected that the index and Rupiah would have continued to strengthen during the week if it was opened, providing positive promise to the financial sector as it opens again next week, because of several signals in the international and domestic financial weather.

Domestically, during Eid celebrations, the level of consumption has increased in significance. People’s purchasing power has increased due to the allocation of holiday allowances, so that people tend to make cash withdrawals to buy Eid Al-Fitr necessities. This is a positive catalyst that is expected to sustain domestic economic growth. Within a week, the JCI rose 3.95%, indicating that market participants were still confident of Indonesia's long-term stability despite the recent political demonstrations that followed after the presidential election. According to PT Artajasa Pembayaran Elektronis as the administrator of ATM Bersama, the transactions growth of this year has hit the highest record during the holiday. Daily transactions have increased by 70%, whereas interbank transfers increased by 60%, to an amount of Rp60 Trillion. Increase of usage in the banking and financial services will bring better performance and revenue for a lot of comp