JCI Slumps Linked to Export-Focused State-Owned Enterprises, Purbaya Speaks Out

Jakarta, CNBC Indonesia - Finance Minister Purbaya Yudhi Sadewa has spoken out about the slump in the Jakarta Composite Index (IHSG) this morning, Thursday (21 May 2026). The IHSG fell by 2% amid a broad sell-off in shares, including those of Prajogo Pangestu’s companies. According to Purbaya, the problem lies more in market participants’ lack of understanding of the actual benefits of an export-focused state-owned enterprise established by President Prabowo Subianto. “Perhaps they do not yet know the real impact. The market, when faced with uncertainty, tends to fear and sell first,” he said during an interview at the Coordinating Ministry for Economic Affairs, Jakarta, Thursday (21 May 2026). Purbaya said that once market participants understand the actual benefits of the export-focused SOE, the IHSG should rebound strongly in the near future. “But if they understand the real impact, it should rise,” he asserted. He additionally explained that the potential for a sharp IHSG rise is due to the export body’s ability to boost revenues for Indonesian companies, as well as government revenues, because malpractices such as under-invoicing could be eliminated. “Because, under-invoicing will be curbed with the existence of that Export Authority. So previously, much of the money was controlled by owners, because the foreign-owned companies belonged to private owners; now it should be reflected in the revenue of those companies that are genuine,” he stressed. When real revenues of exporting companies rise rapidly, Purbaya believes that listed companies on the Indonesia Stock Exchange (BEI) will also enjoy spillover effects. “So the companies will profit as well. They should arguably see double gains for those listed on the exchange that report them. So this should improve their valuations on the exchange. It should gradually rise, and significantly in my view,” he said. As known, the Jakarta Composite Index (IHSG) continued to slump in Thursday morning trading (21 May 2026), with a drop surpassing 2% amid a broad sell-off in Prajogo Pangestu’s stocks. As of 09:43 WIB, the IHSG had fallen 2.02% or 127.54 points to 6,190.96. Earlier in the session, the index had opened higher and touched a daily high of 6,378.81. A total of 481 stocks declined, only 156 rose, while 322 were flat. Transaction value reached Rp4.87 trillion with a trading volume of 8.16 billion shares across 546,300 transactions. (arj/arj) Add as a preferred source on Google