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Emergency PPKM: Market Remains Resilience?

The number of positive cases of COVID-19 in Indonesia continues to proliferate. On Thursday (6/29), there were 20,467 cases reported. Wiku Adisasmito, a spokesman for the COVID-19 Task Force, said the second wave of this pandemic in Indonesia is currently underway. The surge in COVID-19 infections began one week after the Lebaran vacation, indicating that the impact of the long holiday can happen swiftly. Moreover, the emergence of several variants of the novel coronavirus that had invaded Indonesia, aggravated by high mobility, has also contributed to the increase. In order to suppress the current spike in cases, the Indonesian government has decided to impose an emergency community activity restriction, also known as Micro-Community Activity Restrictions (PPKM), which will be applied in Java and Bali from July 3 to July 20, 2021. The implementation of PPKM has been officially announced by President Jokowi, led by The Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Panjaitan, and he then explained in detail the new rules for implementing a special emergency PPKM. This restrictive policy includes 100% WFH for non-essential sector workers, full implementation of online learning, the closure of shopping centers and religious institutions, prohibition on dine-ins, as well as tight health protocols on construction operations. The current circumstance is expected to stifle economic recovery, adding to that, reflecting on the PSBB's implementation in 2020, which resulted in a significant drop in the stock market. This last year's phenomenon conceives investors' wonder if the market is ready to handle this newly added PPKM regulation?

By looking at the global perspective, the global stock market slumps on Tuesday (6/29), caused by the outbreak of Delta