Indonesian Finance Minister Purbaya Yudhi Sadewa Addresses Market Concerns

Optimism About IHSG Performance

Finance Minister Purbaya Yudhi Sadewa recently addressed criticism regarding his appointment as Minister of Finance in the new cabinet. Speaking at the Financial Forum 2025 held at the Main Hall of the Indonesia Stock Exchange (BEI) in Jakarta, Purbaya referenced the recent performance of the Indonesian Composite Index (IHSG), which has reached 8,600. He humorously noted that previous concerns about his appointment being 'unlucky' were contradicted by the market's positive performance.

Understanding Economic Challenges

Purbaya expressed confidence in the IHSG's continued growth, stating, "This (IHSG) will continue to rise because we understand exactly what our problems are and with the new framework, we can coordinate better with the central bank (Bank Indonesia)." His statement highlights the government's awareness of the economy's challenges and its commitment to collaborative policymaking with key financial institutions.

Market Implications

The minister's optimism is based on the government's understanding of the economy's 'illness' and its treatment plan. The coordination between the Ministry of Finance and Bank Indonesia is expected to create a more stable and attractive investment environment, potentially driving the IHSG higher. This development is being closely watched by investors and market analysts as it could signal further positive momentum in Indonesia's capital markets.