IHSG Remains in Red, but Purbaya Confident 10,000 Level Will Be Reached This Year
Jakarta — Indonesia’s Finance Minister Purbaya Yudhi Sadewa expressed confidence that the Jakarta Composite Index (IHSG) will break through the 10,000 level by 2026, despite recent weakness in the stock market resulting from the dynamics of the United States-Iran conflict.
“To the moon, it remains possible. 10,000 (by year-end) is still achievable,” Purbaya said in a doorstop interview at the office of the Coordinating Ministry for Economic Affairs in Jakarta on Monday.
He expressed confidence that the IHSG level can be achieved as Indonesia’s economic prospects improve, particularly when compared with neighbouring countries or G20 member nations.
“With the same resources, with a controlled deficit, we can create faster growth. That’s already very strong,” he said.
Purbaya urged the public not to worry about domestic economic prospects and assessed that current market conditions can be leveraged by investors to acquire fundamentally strong stocks.
“Our economic foundations are solid. We have experienced high oil prices multiple times, as I explained at the Palace yesterday (during the plenary cabinet session at the State Palace). The knowledge has not disappeared; it remains in our heads. So Indonesia’s economy should survive,” Purbaya said.
On Monday afternoon, the IHSG closed lower by 114.92 points or 1.61 per cent to 7,022.29. The IHSG’s decline stood at 19.73 per cent year-to-date (YTD) and 15.50 per cent over the past month.
After opening weaker on Monday morning, the IHSG remained in negative territory throughout the first trading session. In the second session, the IHSG remained in the red until market close.
Based on the IDX-IC Sectoral Index, nine sectors declined, with the property sector recording the steepest drop of 2.33 per cent, followed by the energy sector and raw materials sector, which fell 2.29 per cent and 1.66 per cent respectively.
Two sectors gained ground, led by the healthcare sector, which rose 0.12 per cent, followed by the non-essential consumer goods sector, which rose 2.09 per cent and 0.02 per cent.
Trading frequency was recorded at 1,674,892 transactions with 32.05 billion shares traded worth Rp15.92 trillion. A total of 180 stocks advanced, 542 declined, and 98 remained unchanged.
Regional Asian stock exchanges this afternoon included the Nikkei Index weakening by 68.50 points or 0.13 per cent to 53,751.10, the Shanghai Index falling 10.66 points or 0.26 per cent to 4,084.79, the Hang Seng Index gaining 368.41 points or 1.45 per cent to 25,834.02, and the Straits Times Index advancing 26.41 points or 0.55 per cent to 4,868.69.