On Thursday 10th September, Indonesian stocks fell by approximately 5% following the announcement to reintroduce stricter large-scale social restrictions (PSBB) in Jakarta.
Measures were first eased in May but are now being implemented strictly again. This reduction marks the lowest the stocks have fallen in three months.
Restrictions such as temporarily closing offices, limited transport, and forbidding dining in restaurants are examples of how the newly extended PSBB will affect life in Jakarta. In the cumulative recorded cases, Indonesia has the second-highest number of cases with approximately 1,000 daily cases recorded each month.
Helmi Arman, an economist at Citi Research stated, “the economic impact of retightening restrictions will depend on the programme and how well others perceive it.”