News, Articles & Reviews

Jakarta (ANTARA News) - Indonesian shares closed the morning session sharply lower on fears the weekend hike in local fuel prices might spark violent street protests, with the fall on Wall Street on Friday further dampening sentiment.

On Saturday the Indonesian government raised the cost of fuel by around 30 percent in response to soaring global oil prices and a ballooning subsidy bill. Motorists are now paying 33.3 percent higher for premium gasoline and 27.9 percent for diesel fuel, Thomson Financial reported.

Poor families who still use kerosene for cooking must pay 25 percent more for a liter of kerosene.

The Dow Jones Industrial Average fell 145.99 points or 1.16 percent on Friday as U.S. investors fretted over higher oil prices and weak housing data ahead of a three-day holiday weekend.

The Jakarta composite index was down 42.52 points or 1.7 percent at 2,423.44.

The LQ-45 index was down 10.96 points at 516.16.

Decliners led gainers 127 to 47, with 34 stocks unchanged.

Volume was 1.61 billin shares valued at 2.1 trillion rupiah.

The Indonesian rupiah was 9,345/9,355 to the U.S. dollar, compared to 9,320/9,325 late Friday.

Source