Netizens Claim IHSG Plunges Every Time Prabowo Speaks, Here's What the Bourse Chief Says
Jakarta, CNBC Indonesia - The Indonesia Stock Exchange (BEI) has responded to widespread social media chatter suggesting that the Composite Stock Price Index (IHSG) weakens every time President Prabowo Subianto delivers a speech.
BEI President Director Jeffrey Hendrik stated that linking the IHSG’s movement solely to the President’s speeches is an inaccurate oversimplification. He explained that various other factors simultaneously influence investor decisions and market direction.
“It shouldn’t be like that. Because at the same time, there are other factors that also emerge. So linking it like that, I think, is not quite right,” Jeffrey told reporters at the BEI building in Jakarta on Monday (13/7/2026).
He emphasised that every investment decision is fundamentally based on rational economic considerations. Therefore, market movements cannot be attributed to just one or two factors, including political activity.
Jeffrey also assessed that the correlation between political dynamics and investment decisions has been diminishing over time as the capital market develops. He noted this trend is not unique to Indonesia but is also observed in countries with advanced economies and democracies.
“We see that over time, the correlation between politics and investment decisions is decreasing. If we talk about the 1980s, the correlation between political activity and market movements was still high,” he said.
He cited the United States as an example where political activity now has almost no direct link to capital market investment. Jeffrey believes a similar trend has been underway in Indonesia for quite some time, meaning the correlation between political activity and stock market movements is no longer very high.
Previously, netizens on the X platform had built a narrative about how the IHSG corrected every time President Prabowo Subianto appeared in public to deliver a speech on the country’s economic conditions.
“Watch the IHSG figure on the right side of the screen when President Prabowo speaks, it PLUMMETS. In just 2 minutes of his speech, the IHSG dropped 5 points. The market didn’t even listen to his speech,” one account posted on X following the President’s speech on 20 May 2026.
“The gist of Prabowo’s speech today: ‘your head, do I care, whining.’ The effect? IHSG plunged awoakwok,” another account posted after a speech on 24 April 2026.
Looking at the historical data, Prabowo was officially inaugurated as President of the Republic of Indonesia on Sunday, 20 October 2024. Observing the movement from 18 October 2024 to today, 13 July 2026, the IHSG has fallen by 23.27%.