Finance Minister confident of IDX rebound due to solid economic fundamentals

Jakarta (ANTARA) - Finance Minister Purbability Yudhi Sadewa is optimistic that the Indonesia Stock Exchange (IDX) is capable of rebounding, supported by the solid fundamentals of the economy. “I am confident (the IDX) will rise again because the economic foundation is good,” Purbaya told reporters at the Parliament Complex, Jakarta, on Wednesday.

The state treasurer did not set a specific target level for the IDX this year. However, he noted that various economic indicators could drive the IDX back into positive territory. One such indicator is the inflation rate in May 2026, which stood at 3.08 per cent year-on-year, remaining within Bank Indonesia’s target range of 2.5 per cent plus or minus 1 per cent.

Purbaya assessed that the current volatility in the IDX is a result of short-term concerns influenced by negative domestic issues. He argued, however, that domestic demand continues to show stable performance. He believes public purchasing power remains strong, as evidenced by high levels of public activity in both Jakarta and regional areas, as well as demand for tertiary needs, such as entertainment venues and hotels.

Strong economic performance is also reflected in tax revenue realisation. The Ministry of Finance reported that tax revenue reached Rp646.3 trillion as of 30 April 2026, a 16.1 per cent increase compared to last year’s realisation of Rp556.9 trillion.

“Do not be afraid. The economic fundamentals are good. This may just be short-term fear. The economic foundation is good; there are no problems,” said Purbaya. He also ensured that he would maintain economic performance and keep market sentiment stable.

The IDX closed lower on Wednesday afternoon by 254.36 points, or 4.11 per cent, to the 5,941.07 level. Meanwhile, the LQ45 index, comprising 45 blue-chip stocks, fell by 30.28 points, or 4.89 per cent, to 588.99.

Liza Camelia Suryanata, Head of Research at Kiwoom Sekuritas, stated that the IDX sentiment is driven by investors closely monitoring Indonesia’s governance and policy credibility. Liza explained that there are at least five main concerns dominating investor sentiment, including governance and policy credibility following negative outlooks from Moody’s and Fitch Ratings, and pressure on the Rupiah exchange rate approaching the Rp18,000 per US dollar level. Other factors include the shrinking middle class, which has traditionally been the engine of domestic consumption, ongoing foreign outflows, and, most significantly of late, the increased risk regarding leadership and policy communication in the eyes of global investors.