Purbaya Not Replaced, Market Welcomes Fiscal Policy Clarity
The strengthening of the Jakarta Composite Index (IHSG) and the rupiah exchange rate in trading on Tuesday (9/6/2026) is considered inseparable from the improvement in market sentiment following the circulation of clarification regarding the issue of a cabinet reshuffle. The subsiding of speculation about changes in the economic ranks helped reduce the uncertainty that had previously been a concern for investors.
Aditya Hera Nurmoko, an economist at STIE YKP Yogyakarta, said the market generally responds positively when political and policy uncertainty diminishes. According to him, the issue of changing economic officials, particularly Minister of Finance Purbaya Yudhi Sadewa, had raised questions about the continuity of fiscal policy and the government’s economic coordination.
“The rumour of a finance minister replacement had raised questions regarding the direction of the government’s fiscal policy. When the issue was denied, some investors regained confidence that there would be no sudden changes in economic policy,” Aditya said on Tuesday (9/6/2026).
He explained that market players generally pay attention to the stability and consistency of economic policy. Clarity regarding policy direction is considered to help maintain investor confidence, especially amidst the dynamics of a global economy still full of challenges.
Besides this factor, Aditya assessed the market strengthening was also influenced by investors’ buying actions after the pressure that occurred in previous trading. A day earlier, the IHSG experienced a fairly deep correction, while the rupiah also weakened against the US dollar.
When market pressure began to subside, some investors took advantage of the decline in share prices to conduct buying actions. This condition then encouraged a recovery in the stock market and the exchange rate.
Nevertheless, Aditya emphasized that the strengthening of the IHSG and the rupiah cannot be explained by just one factor. The movement of financial markets is influenced by various variables, ranging from foreign capital flows, interest rate policy, global economic developments, US dollar movements, to market players’ expectations of government and Bank Indonesia policies.
“The subsiding of the reshuffle rumour likely became one of the positive catalysts that reduced market panic. However, it was not the only factor determining the strengthening of the IHSG and the rupiah today,” he said.
A similar view was conveyed by Esther Sri Astuti, a lecturer at the Faculty of Economics and Business, Diponegoro University. According to her, the strengthening of the financial market depends heavily on the level of investor confidence in the prospects of the national economy and policy stability.
“The main thing is, if large capital flows enter Indonesia and the country’s foreign exchange reserves are plentiful, then the rupiah value will not depreciate,” said Esther.
She explained there are a number of factors that investors consider in investing in Indonesia, including legal certainty, economic growth prospects, availability of raw materials, business ecosystem support, global supply chain integration, adequate infrastructure, and regulatory harmonisation between central and regional governments.
According to Esther, policy stability and certainty in the direction of economic management are important elements in maintaining Indonesia’s attractiveness in the eyes of investors.
“If these factors can be maintained well, the opportunity for incoming investment will be even greater and ultimately support the strengthening of the domestic financial market,” she said.