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View all search resultsWiretapping 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.
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A man uses his mobile phone in front of a reflection of an electronic board displaying stock prices on Oct. 14 at the Indonesia Stock Exchange (IDX) building in South Jakarta. (JP/Iqro Rinaldi)
T
he illegal wiretapping scandal targeting President Prabowo Subianto, government officials and business leaders is deepening investor jitters, adding to pressure on an administration already struggling to contain market turmoil and restore investor confidence.
The newly exposed case has put businesses on alert over the risk of corporate secrets, investment strategies and transactions being exposed, threatening to erode trust in the country’s investment climate, business groups warn.
“Businesses need secure information, confidential communications and legal certainty to maintain investor confidence,” Erwin Aksa, deputy chair of the Indonesian Chamber of Commerce and Industry (Kadin) and a Golkar Party lawmaker, told The Jakarta Post on Wednesday.
Political uncertainty must not spill over into economic uncertainty, he emphasized, adding that the government’s handling of the case would be critical to preserving investor confidence. He therefore urged authorities to investigate the allegations transparently and based on evidence.
Read also: Three police generals named in plot to bug Prabowo
Donna Priadi, managing director of the American Chamber of Commerce in Indonesia (AmCham), said political stability, regulatory certainty and the rule of law were essential to maintaining investor confidence, alongside a secure business environment that protects confidential information and commercial interests.
“We recognize the seriousness of the allegations, we believe it is important to allow the relevant authorities to address the matter through appropriate legal and institutional processes,” Donna told the Post on Wednesday.
