Units of Singapore-listed retail REIT Lippo Malls Indonesia Retail Trust (LMIRT) (SGX:D5IU) closed the trading day lower by about 2.5% on confirmation from Jakarta that the country has elected a House Speaker that is seen to be at odds with the incoming administration.

LMIRT is an Indonesia-focused REIT with 23 retail malls and spaces across Indonesia worth about SGD1.6 billion.

The appointment of Setya Novanto from the oposition Golkar party has been described as a further setback for the incoming president Joko Widodo who hails from the rival Indonesian Democratic Party - Struggle (PDI-P).

Novanto is expected to put up fierce resistance towards plans by the incoming administration to boost Indonesia’s economy such as the rolling back of fuel subsidies. His appointment has cast doubt on Joko Widodo’s ability to fully execute reforms promised during his presidential election campaign.

Correspondingly, the Jakarta Composite Indonesia saw its steepest decline since 20 May as the IDR weakened by about 0.2% against the USD - the only Asian currency to do so for the day.