IDX: IHSG Strengthening Triggered by Positive Market Response to President Prabowo's Speech
Director of Trading and Exchange Member Regulation at the Indonesia Stock Exchange (IDX), Irvan Susandy, said the strengthening of the Jakarta Composite Index (JCI) was inseparable from the positive response of market participants to President Prabowo Subianto’s State Address.
According to Irvan, investors responded positively to a number of points delivered by the President, particularly regarding Indonesia’s development, economic stability, economic growth, and the various growth opportunities offered by the government.
“This means the market is responding positively to the President’s report on Indonesia’s development, economic growth, existing stability, and the opportunities from his administration,” Irvan said at the IDX Building in Jakarta on Friday (14/8).
The IDX, Irvan continued, welcomed the various national economic growth opportunities. These conditions were deemed capable of forming a strong foundation for the development of Indonesia’s capital market in the future.
“We are very positive about this, because God willing, it will become a good foundation for us to grow and develop,” Irvan said.
He explained that healthy economic growth has the potential to boost the performance of listed companies or issuers. Improved corporate performance and profits would then have a positive impact on the development of Indonesia’s capital market.
“If economic growth is good, listed companies grow well, their profits grow, then the capital market will certainly also grow, because the condition of the listed companies will also improve,” Irvan said.
The growth of issuers and the capital market, according to Irvan, also has the potential to increase the attractiveness of Indonesia’s capital market as an investment destination, both for foreign and domestic investors.
“So it becomes increasingly investable, and I am confident that with good growth and good domestic stability, this will be a plus point for our country to retain foreign investment, and local investors will certainly also be more comfortable transacting and profiting,” Irvan said.
On Friday, President Prabowo Subianto delivered his State Address at the 2026 Annual Session of the People’s Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and the Regional Representatives Council (DPD). On the same occasion, the President also delivered the Government’s Introduction/Statement on the Draft Law on the 2027 State Budget (APBN) along with its Financial Note.
In his speech, President Prabowo emphasised that economic growth and investment are not the ultimate goals of development. According to him, both are instruments for achieving improvements in public welfare.
“For me, growth and investment are not the end goal. Our goal is the welfare of our people,” President Prabowo said.
President Prabowo also stated that Indonesia’s investment realisation in 2025 reached Rp1,931 trillion and succeeded in creating more than 2.7 million jobs.
He is optimistic that the implementation of appropriate, rational policies based on sound considerations can maintain the momentum of national economic growth. The government is even targeting Indonesia’s economic growth to reach 6% by the end of 2026.
“With the right policies, rational ones, using common sense, I am confident our economic growth by the end of this year can reach 6%,” President Prabowo said.