IHSG Falls Nearly 20%, Finance Minister Purbaya Recommends Quality Stock Picks

Jakarta — Finance Minister Purbaya Yudhi Sadewa has advised capital market investors to be selective when choosing shares amid current market pressures. According to Purbaya, the ongoing volatility of the Composite Index (IHSG) presents an opportunity for investors to accumulate positions, particularly in stocks with strong fundamentals.

“Choose quality shares for accumulation. Our economic foundation is solid,” said Purbaya during a meeting at the Office of the Coordinating Ministry for Economic Affairs on Monday (16 March 2026).

He cautioned investors against being tempted to purchase speculative shares, often referred to as “penny stocks,” and instead advised focusing on companies with solid business performance. The IHSG has been in correction trend since the beginning of 2026, with the index down nearly 20% year-to-date.

The negative trend continued, with the index closing Monday (16 March 2026) down 114.92 points or 1.61% to 7,022.29. Despite this, Purbaya remained optimistic about Indonesia’s stock market prospects in the medium to long term, suggesting the index still has potential to reach significantly higher levels.

“Reaching 10,000 is still achievable because our economy is performing well,” he stated.

Purbaya’s optimism is grounded in Indonesia’s strong national economic fundamentals, which he described as superior to several regional economies. He emphasised that Indonesia’s economic position remains relatively robust, particularly among G20 member nations.

“Our economy will differ from our neighbouring countries. We are already number one in the G20, so why doubt further?” he said.

Additionally, Purbaya noted that Indonesia’s controlled fiscal deficit provides the government with room to continue driving economic growth. “With the same resources and a controlled deficit, we can create faster growth,” Purbaya concluded.