Rancak Media – Finance Minister Purbaya Yudhi Sadewa has addressed the recent dip in the Indiara Composite Index (IHSG) following the government’s announcement regarding the establishment of a state-owned enterprise (BUMN) specifically dedicated to the export of strategic commodities.
Minister Purbaya attributes the market decline to initial uncertainty among investors who have yet to fully grasp the long-term strategic implications of the policy. He remains confident that once the market better understands the positive impact these structural changes will have on corporate performance, investor sentiment will shift in a favorable direction.
“Investors often react with caution to uncertainty, leading to initial selling pressure. However, once the true benefits of this initiative are clear, I am confident that valuations will trend upward,” Purbaya stated while speaking at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Thursday (May 21).
The Minister explained that the newly formed export entity is designed to curb the practice of under-invoicing in commodity export activities. He noted that, historically, some corporate profits were not fully reflected in the financial reports of domestic listed companies because portions of these earnings were diverted through offshore entities owned by the same stakeholders.
“By establishing this export body, we can effectively bridge the gap left by under-invoicing. Revenues that were previously manipulated will now be accurately reflected in the companies’ primary sales records,” he added.
Purbaya further emphasized that improved transparency in transaction reporting will lead to officially higher corporate profits. This, in turn, is expected to bolster the valuations of listed firms on the stock exchange. He highlighted that companies stand to benefit twice: through genuine earnings growth and through increased transparency in their public disclosures.
Ultimately, the Minister views the formation of this BUMN as a positive catalyst for the stock market in the medium to long term. By enhancing export governance, the government aims to strengthen both the credibility and the profitability of publicly traded firms within the natural resources sector. “This move should significantly enhance the market valuation of listed companies. We expect to see a gradual but significant recovery,” he concluded.
For context, data from RTI Business shows that the IHSG fell by 2.25 percent to the 6,227.41 level by 11:19 WIB on Wednesday (May 20), shortly after President Prabowo Subianto announced the creation of the state-owned export firm, PT Danantara Sumber Daya Indonesia. Before the announcement, the index had been trading strongly, gaining over 1 percent to reach 6,459.55.
Market breadth remained weak during the session, with 135 stocks advancing, 548 declining, and 127 remaining stagnant. Year-to-date in 2026, the IHSG has recorded a decline of 27.64 percent.
Summary
The Indonesia Composite Index (IHSG) experienced a 2.25 percent decline following the government’s announcement of a new state-owned enterprise (BUMN) focused on strategic commodity exports. Finance Minister Purbaya Yudhi Sadewa attributed this market reaction to initial investor uncertainty regarding the structural policy changes. He maintains that once the market fully understands the long-term benefits, investor sentiment is expected to improve.
The new entity aims to curb under-invoicing in commodity exports, ensuring that corporate revenues are accurately reflected in domestic financial reports. By increasing transparency and correcting manipulated profit records, the government anticipates higher valuations for listed firms in the natural resources sector. Ultimately, officials view this initiative as a positive catalyst that will strengthen market credibility and support long-term recovery.
