Wiretapping scandal adds to market jitters, threatens investor confidence
Foreign investors stepped up their selling on Tuesday as news of the wiretapping case began circulating, recording net sales of Rp 575 billion (US$31.7 million) as the IDX Composite Index tumbled 3.78 percent.
Foreign investors have sold off stocks, resulting in a Rp 575 billion (US$31.7 million) net loss on Tuesday following news of an alleged wiretapping case involving President Prabowo Subianto, government officials, and business leaders. This scandal is exacerbating investor worries, amplifying pressure on a government already battling market volatility and efforts to restore confidence.
The situation has put businesses on high alert, fearing potential exposure of corporate secrets, investment plans, and transactions, which could undermine trust in Indonesia's investment climate. Erwin Aksa, deputy chair of the Indonesian Chamber of Commerce and Industry, stated that businesses require secure information, confidential communications, and legal certainty to maintain investor confidence.
He stressed that political uncertainty must not be allowed to lead to economic uncertainty, and urged authorities to conduct a transparent and evidence-based investigation into the allegations. Donna Priadi, managing director of the American Chamber of Commerce in Indonesia, echoed Aksa's concerns, emphasizing that political stability, regulatory certainty, and the rule of law are crucial for preserving investor confidence, along with a secure business environment that safeguards confidential information and commercial interests.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
