Finance Minister Purbaya Optimistic IHSG Will Rebound on Solid Economic Fundamentals

Finance Minister Purbaya Yudhi Sadewa has expressed his optimism that the Indonesia Composite Index (IHSG) will soon rebound. This confidence is based on the national economic fundamentals, which are considered to remain solid amidst short-term market volatility.

“I am confident that the (IHSG) will rise again because the economic foundation is good,” Purbaya stated when providing a briefing to the media at the Parliament Complex, Jakarta, on Wednesday (3/6/2026).

Purbaya explained that the optimism for the capital market is supported by several positive economic indicators. One of these is the inflation rate for May 2026, which was recorded at 3.08 per cent year-on-year. This figure is considered to be within Bank Indonesia’s target range of 2.5 per cent, plus or minus 1 per cent.

In addition to inflation, state revenue performance also shows a strong growth trend. As of 30 April 2026, realised tax revenue reached Rp646.3 trillion, representing a 16.1 per cent growth compared to the same period last year, which stood at Rp556.9 trillion.

The Finance Minister assessed that the recent weakening of the IHSG was more influenced by short-term concerns and negative domestic issues. However, according to him, domestic demand and public purchasing power remain very stable.

“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,” he asserted. He added that public activity in various regions remains vibrant, including demand in tertiary sectors such as hotels and entertainment venues.

Head of Research at Kiwoom Sekuritas, Liza Camelia Suryanata, revealed that investors are currently scrutinising issues of governance and policy credibility.

Responding to this, Minister Purbaya ensured that the government will continue to maintain economic performance to ensure market sentiment remains stable and global investor confidence recovers.

In the Asian region, the majority of stock indices also moved lower due to increasing tensions between the US and Iran.

Finance Minister Purbaya Yudhi Sadewa confirmed there would be no specific intervention despite the sharp correction in the IHSG, relying instead on solid economic fundamentals. The Indonesia Stock Exchange (BEI) also confirmed that capital market fundamentals remain strong, noting that net profits for LQ45 issuers grew by 29.9% in the first quarter of 2026, the highest in five years.