Jakarta – Stocks slipped Wednesday, as early gains by some state-owned companies eased on concern of the country's political situation. The Jakarta Stock Exchange composite index eased 6.216, or 1.7%, to 360.927. Volume stood at 160 million shares valued at 249 billion rupiah. Decliners outnumbered advancers, 60 to 31, with 88 stocks unchanged and 109 others untraded.

Police fired tear gas for a second consecutive day Wednesday when stone-throwing protesters tried to break up a political party congress in Palau, Sulawesi. At least one person was injured. On Tuesday, seventeen people were injured after supporters of the ousted leader of the Indonesian minority Democratic Party, Megawati Sukarnoputri, clashed with security officers.

Meanwhile, mild buying on the back of an early rise in shares of state-owned companies eased as investors switched their equities to funds which offer high interest rates. Bank Indonesia Certificate's, or SBI, average interest rate Wednesday was set at 70.44%. At close, the dollar was trading at 11,062.5 rupiah, compared with late Tuesday at 11,100 rupiah.

Market leader Telekomunikasi Indonesia, which accounts for 17% of the market capitalization, dropped 10%, or 275 rupiah, to 2,500 rupiah and international call operator Indosat lost 325 rupiah to 8,600 rupiah.

[On August 22 Associated Press reported that a small bomb, discovered in Indonesia's tallest building, had been diffused by police. The building houses some operations of the central bank, a social club for Americans and the offices of about 100 local and foreign companies - James Balowski.]