Bombs Exploded at the Ritz and Marriott Hotels

Today heard that bombs have exploded at Ritz and Marriots and 7 people died instantaneously.
My simpathy to those affected with the blast. Was myself at Marriott last night for business leaders meeting representing our President Director so I am lucky I am still one piece.

I guess the terrorists hate SBY to the bone. He has captured loads of them for the past 5 years, so with landslide win in the election, the terrorists want to show that they are strong and very much alive. I expect SBY to intensify of his focus on combating these terrorists. Budget spending for military advancement have been increased and therefore the portion allocated for terrorism eradication will increase and the process of hunting down the terrorists will be intensified. SBY could impose more regulations on the running of islamic schools. SBY will now have a lot more enemies e.g. terrorists, corruptors, slackers, islamic extreme spiritual leaders and many opposition parties.

Rupiah may fall to around Rp.11,000 level and to counter further decline the government may pour in more liquidity in the market to uphold such decline and interest rate declining trend could be halted momentarily until things have stabalisized somewhat. Stock market will see some volatility for the next few weeks until really good news come back to the market.

Obviously there was a knee jerk reaction but I couldn’t fathom that the stock market managed to flip to positive late morning although slide down slightly close to mid day closing. I had expected the stock market to crash. It could be that the negativity of this news to be short lived and I guess fundamentally, Indonesia will not change and will continue to be the next important market after China and India. So, business as usual, guys!