The Decission of Indonesia stocks on its stock market

Indonesia Stocks Decides to reopen its stock market on Friday after suspending trade for two days and after policy makers unveiled new measures aimed at calming fears that Southeast Asia's top economy faces a new crisis.
But with new steep losses on Wall Street on Thursday and fresh plunges on Asian markets on Friday traders expect the market to drop.
"I think the index will drop by another 100-plus points this morning, maybe slide by around 10 percent again," John Teja, head of equities sales at Ciptadana Securities said.

"The bloodbath continues. This is one of the worst that I have ever seen," he added.
Following some other countries, Indonesia eased on Thursday accounting rules on the fair value of assets, or mark-to-market. It has also eased reserve requirements for commercial banks as well as made it easier for listed firms to conduct share buybacks.

Finance Minister Sri Mulyani Indrawati said after announcing the new measures she expected them to "lead to a more conducive and calm situation not only in the stock exchange but also in our banking sector and the money market."
The central bank, Bank Indonesia, also said it now saw more room to cut interest rates. This followed it stating that inflation was its main concern, having on Tuesday hiked its overnight policy rate by 25 basis points to 9.50 percent.
But Sarah-Jane Wagg, president director of UBS Securities Indonesia, said she expected more falls in Jakarta stocks after fresh global market turmoil, although also saw it as a chance for bargain hunters.

"Had we not had that disastrous fall in the U.S. last night, I would expect the market would have fallen sharply and bounced up and probably ended up on the day but given the mood last night I think that's going to be tough to achieve," she said.
"But I think we are going to see some good bargains today, I have been recommending clients to put the toe in the water," she added.
Indonesia's benchmark composite index <.JKSE> lost more than a fifth this week. The stock exchange suspended trading on Wednesday and Thursday, the first time the exchange has voluntarily halted trade.

Along with a plunge in the stock market, which has fallen 47 percent this year, the rupiah currency is also trading near its lowest in about three years, although has held up much better than other regional currencies such as the Korean won.
Indonesia was the country hardest hit by the Asian financial crisis a decade ago, due in part to large corporate foreign debt and a weak banking system. Political upheaval also meant it took longer for the country to recover.