Ross Taylor

: A drop in Indonesia main equities index of almost 7 per cent by the end of last week, the same time that the country executed several foreigners, is not being seen as a sign of investor sentiment over the president hardline policy. "I think quite frankly in terms of investment it not about the executions," said Ross Taylor, president of the Perth-based Indonesia Institute. "Despite all the goings on and noise, it very resilient for the relationships already established by Australian businesses." But the withdrawal of more than $500 million over six trading sessions is a warning shot that investors are growing more concerned about whether the president has the toughness to implement the reforms needed to boost growth and deliver jobs, according to Australian Broadcasting Corporation. Several large Indonesian conglomerates reported lower profits, including Astra International, which reported a 16 per cent first quarter drop on declining car sales and lower commodity prices. Related Story: Indonesia faces long road to economic growth rebound Related Story: Indonesia leaves rates on hold amid concerns about fuel price rises Related Story: Indonesia president causes a buzz by flying economy class Map: Indonesia While Indonesia new president has been seemingly dismissive of international concerns about his use of the death penalty, a recent run on the country share market is a clear signal of international storms that he will not be able to avoid. One of the dominant market players, instant noodle maker Indofood Sukses Makmur, also reported lower earnings, a signal in a country that relies on consumer spending for its growth. Mr Arif said foreign investors had realised the situation was not as "rosy" as earlier in the year. On the other side, one of the largest consumer goods producers, Unilver Indonesia, has recorded better than expected sales and profits. "That week was a turning point," DBS Vickers Securities research head Maynard Arif said. "The reality in my opinion is that investors had massive hopes prior to the corporate earnings season and that had been holding up the index." Mr Arif said it was a week that investors "became more nervous and saw it as a sign to trim their positions". Investors 'unsure' president has backing to drive through reforms Indonesia is facing its slowest growth in more than five years, and predictions are now moving towards growth of less than 5 per cent. "There is quite a large degree of consumer worry out there and we're seeing it in the numbers," Mr Taylor said. (news.financializer.com). As reported in the news.