Government Holds Off on Stock Market Incentives Amid Market Manipulation Concerns

Delayed Implementation Due to Lack of Enforcement

The Indonesian government has put on hold its plans to introduce stock market incentives following a previous announcement by Finance Minister Purbaya Yudhi Sadewa during his visit to the Indonesia Stock Exchange (BEI) in October 2025. The decision to delay these incentives comes as authorities have yet to take decisive action against market manipulators, colloquially known as "goreng-goreng" in local market parlance.

Conditions for Incentive Implementation

Purbaya emphasized that the implementation of these incentives is contingent upon concrete enforcement actions against market manipulators, specifically the arrest of individuals involved in such practices. The minister's statement underscores the government's cautious approach to supporting the stock market, ensuring that any stimulus measures are not exploited by market manipulators.

Market Implications and Investor Sentiment

The delay in implementing stock market incentives may have significant implications for market dynamics and investor sentiment. The Indonesian stock market has been grappling with issues of market manipulation, which can deter genuine investors and undermine market integrity. By linking the release of incentives to enforcement actions, the government aims to create a more stable and trustworthy investment environment.

Government's Dual Approach

The government's strategy appears to be two-pronged: on one hand, it is committed to supporting the stock market through incentives; on the other, it is keen on ensuring that such support does not inadvertently benefit those engaging in manipulative practices. This approach reflects a broader effort to balance market stimulation with regulatory enforcement.