Economist Stresses President's Speech Not Sole Factor in JCI Decline, Here's the Explanation

Dr Surya Vandiantara, an economist at the Muhammadiyah University of Bengkulu, stated that the common assumption linking the decline of the Jakarta Composite Index (JCI) to President Prabowo’s speeches is inaccurate.

According to him, theoretically, the rise and fall of the JCI is more heavily influenced by fundamental factors, such as the performance of companies listed on the stock exchange, rather than solely being a result of the President’s speeches.

“If the majority of companies listed on the exchange experience a decline in revenue or incur losses, it is only natural for the JCI value to follow suit,” Surya said in a statement on Saturday, 4 July 2026.

He noted an anomaly in the JCI, where company performances tend to remain stable and macroeconomic indicators remain positive, yet the JCI continues to decline. Consequently, he believes such narratives indicate the presence of rogue investors engaging in irrational actions within the stock market, causing the JCI to drop.

“It has been proven that this decline in the JCI is being linked to political agendas intended to discredit the President,” he added.

Surya observed that these rogue investors, through their irrational actions, have disrupted healthy market mechanisms. At the same time, this harms investors who have conducted proper fundamental analysis and even negatively impacts the listed companies themselves.

“In pursuit of hidden, dirty political agendas, they have caused harm to many parties,” said Surya.

Therefore, Surya urged the public to be more cautious so as not to be swept up in the wave of irrational actions by these investors. He also called on the government to take firm action against such rogue investor behaviour.

“The government must be brave enough to take decisive action against the irrational behaviour of rogue investors driven by political agendas, in order to protect the wider public,” he concluded.