Purbaya Believes IHSG Could Break Through 8,000, Says Many Stocks Are Undervalued

Jakarta — Finance Minister Purbaya Yudhi Sadewa is confident that the Jakarta Composite Index (IHSG) still has room to extend its gains and surpass 8,000. He said the opportunity opens as the country’s macro fundamentals improve. He noted that stock market movements will ultimately follow the fundamentals of the companies and the economy as a whole. “Ultimately, stock price movements depend on the fundamentals of the companies themselves, which will be influenced by the fundamentals of the economy,” Purbaya told reporters at the Istana Negara (Presidential Palace) in Jakarta on Friday (22 May 2026).

The growth in profitability is seen as a positive sentiment for the stock market. “If the economy is good, profitability also rises,” he said. Purbaya even said that a number of stocks are currently undervalued, or trading below their fair value. He urged market participants not to be overly concerned by the fluctuations seen at present. The government, he said, will continue to improve the national economy. “So there is no need to be afraid; our problems will be resolved, and the economy will move faster and faster in the future,” he said. Market sentiment is seen as likely to recover as domestic conditions improve. “So it’s just a matter of time; not long before IHSG prices change,” he added. Purbaya also noted technical signals that suggest the market could strengthen in the near term. “But looking at the technicals, next week it should move quickly,” he said.