New Outlook on IHSG: Purbaya Confident It Can Break Through 28,000 Level

Prospects for the Indonesian stock market are still wide open amid the strengthening of the domestic economy. Finance Minister Purbaya Yudhi Sadewa stated that the Composite Stock Price Index (IHSG) has the potential to rise up to fourfold in the coming years.

With the IHSG currently hovering around 7,000, he estimates the index could reach 28,000 in the 2029–2030 period as the economic expansion phase continues.

“From the lowest point to the peak of expansion, it can be 4–5 times. Now it’s around 7,000, it could reach 28,000,” Purbaya said on the sidelines of the launch of the Pintar Mutual Fund Programme and Mutual Fund Week 2026 at the Main Hall of the Indonesia Stock Exchange (BEI) in Jakarta on Monday (27/4/2026).

He assessed that stock market movements are inseparable from the strength of economic fundamentals. Therefore, the government is currently focusing on accelerating growth to break out of the stagnant trend around 5%.

Several measures are being taken, from strengthening strategic projects to giving a greater role to Coordinating Minister for the Economy Airlangga Hartarto in overseeing priority programmes. The government is also forming a task force to address growth obstacles.

On the fiscal side, improvements are starting to show. Tax revenues in the first quarter of 2026 grew by around 20%, providing room for the government to boost economic activity.

Purbaya cited the IHSG surge at the start of the 2000s, which rose sharply over one decade. According to him, this pattern could repeat if growth momentum is maintained.

“Amid global turbulence, we can still maintain domestic growth. This will continue,” he said.

However, he cautioned that stock market strengthening does not happen automatically. Deepening the financial markets is seen as unfinished homework, particularly to expand the role of domestic investors.

The government is also opening opportunities for incentives for the capital market, provided that programmes to increase investor participation run effectively in the coming months.

For the public, especially retail investors, this optimism presents opportunities but still demands caution. Stock market performance, according to Purbaya, will continue to follow the direction of the national economy.