Group 1 - Indonesia's stock index fell by 1.5% last Friday, leading declines among global indices, with further drops observed on Monday, including a peak decline of 3.6%, marking the largest drop since April 8 [1] - Analysts indicate that political risks in Indonesia are rising, leading to increased risk premiums in the stock market, with a low allocation stance due to valuations not reflecting potential economic issues [3] - Despite recent turmoil, Indonesia's economic growth has exceeded expectations, with Q2 growth returning above 5%, boosting market confidence [5] Group 2 - The Indonesian central bank is focused on maintaining exchange rate stability and ensuring sufficient liquidity for the rupiah, utilizing market mechanisms to reflect fundamentals [3] - Indonesia's stock market has seen a year-to-date increase of approximately 9.6% prior to recent events, indicating a strong performance despite current challenges [3] - The implementation of mandatory foreign exchange retention policies has significantly increased foreign exchange reserves, enhancing confidence in the rupiah and indirectly supporting the stock market [5]

Group 1 - The Indonesian stock index experienced a significant decline, dropping 1.5% last Friday and continuing to fall on Monday, with the Jakarta Composite Index reaching a maximum drop of 3.6%, the largest since April 8 [1][3] - Analysts express concerns over rising political risks in Indonesia, which may lead to increased risk premiums in the stock market. The current valuations do not reflect potential economic issues [3] - Despite recent turmoil, Indonesia's economic growth has exceeded expectations, with a second-quarter growth rate returning to above 5%, boosting market confidence [5] Group 2 - The Indonesian central bank is focused on maintaining exchange rate stability and ensuring sufficient liquidity for the rupiah, utilizing market mechanisms to reflect fundamentals [3] - Indonesia's stock market has seen a year-to-date increase of approximately 9.6%, and the implementation of foreign exchange retention policies has strengthened foreign reserves, enhancing confidence in the rupiah [5] - Analysts suggest that despite current market volatility, the long-term outlook remains positive due to potential monetary policy easing and market valuation advantages [5]