Election 2014 - The Day After

Since the day after the election day, the stock index has passed 5,000 level. A newspaper headline calls it "Jokowi's effect", citing an assumption of investor's confidence in the election result. Jokowi is one of the two Presidential cadidates who had been declared winner by 7 survey agencies, out of 11 survey agencies conducting quick count. However, since the election commission has not completed the ballot count, one cannot help to think that the paper has been taking side. Arguably, I guess it is okay to take side this time, even for the press who supposed to be neutral. It gives more color to the situation.

I have a different view, though. And I guess it is okay, too. In my opinion, investors do not care much about who wins the election. Investors care more on the political stability after the election. Jokowi or Prabowo, if the day after the country goes into turmoil, investors will be very cautious in their investments. Luckily, it went peaceful. Either because Indonesians have become more politically mature, or simply because those who usually staging protests have now gone mudik for Eid Al Fitri celebration. I can't help to suspect the later, though.