Jakarta - Trading on the Indonesia Stock Exchange was suspended for a second day Thursday although it might resume Friday if conditions allow, a cabinet minister said. The Indonesian Stock Exchange halted trading Wednesday after the benchmark composite index fell by more than 10-per-cent to 1,451.669, its lowest level since September 2006.
Acting Finance Minister Sofyan Djalil told reporters after a cabinet meeting late Wednesday that Thursday's session also was cancelled and the suspension could be extended through Friday unless market conditions improved.
Exchange officials said the market was closed to prevent a further drop in share prices and to calm investors.
Djalil said President Susilo Bambang Yudhoyono, meanwhile, has ordered a number of state enterprises to buy back their shares to help restore confidence in the Indonesian Stock Exchange.
Djalil also ordered 14 state enterprises to exchange their saved dollars for rupiah to help support the local currency.
"We asked them to consider the country's economic condition," Djalil was quoted as saying by the detik.com news website, adding that the companies were told to coordinate with the central bank about the currency exchange. "US dollars owned by state companies could add to the country's foreign reserves."
On Tuesday, Bank Indonesia raised its benchmark interest rate by 25 basis points to 9.5 per cent as the rupiah fell against the dollar. It was valued at 9,650 to the dollar at the close of trading Wednesday, down 90.
