Researcher says Prabowo's speech boosted IHSG

Researcher from Indikator Politik Indonesia, Bawono Kumoro, assessed that President Prabowo Subianto’s speech during the MPR Annual Session on Friday encouraged the strengthening of the Jakarta Composite Index (IHSG). He said the IHSG strengthened in the first trading session on Friday, meaning the President’s state address had boosted investor buying interest, especially in shares of state-owned enterprises (BUMN). “The President’s speech became a sentiment booster, strengthening buying interest so that the market responded through rising share prices,” Bawono said in Jakarta on Friday. He assessed that the President’s speech reaffirmed the government’s commitment to reforming BUMN. This became one of the factors directing investor buying interest towards shares of state-owned companies. According to him, the IHSG strengthening coinciding with the state address dispels the previous assumption that a presidential speech is always followed by a weakening of the IHSG. The IHSG closed significantly higher on Friday, as market participants responded to the government’s fiscal discipline targets and economic growth projections for 2027. The IHSG closed up 100.12 points, or 1.59 percent, to 6,401.89. Meanwhile, the LQ45 index of top stocks rose 5.12 points, or 0.82 percent, to 632.28. “The narrowing deficit, coupled with expectations of six percent economic growth next year, met the expectations of market participants and investors,” said Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus.