Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, has announced a significant milestone: the Composite Stock Price Index (IHSG) recently hit a record high of 8,602. This achievement, according to Minister Sadewa, sends a clear signal that the nation’s economy is on a robust recovery path. He further highlighted that the implementation of consistent and well-orchestrated policies is crucial for fostering even more positive economic prospects moving forward.
Addressing Commission XI of the House of Representatives (DPR) during a working meeting on Thursday, November 27, Minister Purbaya expressed optimism about the market’s trajectory. “The stock market is poised for even greater strength, gradually attracting long-term investors,” he stated, emphasizing the growing confidence in Indonesia’s economic stability.
Recent data from the Indonesia Stock Exchange (IDX) on November 26 further underscores this positive trend. Trading volume for the day surged to an impressive 53.86 billion shares, with transactions executed 2.70 million times. The market capitalization reached a substantial Rp 15,741 trillion, and the total transaction value that afternoon alone amounted to Rp 26.67 trillion. While 293 shares saw gains, 365 experienced corrections, and 149 remained unchanged, the overall performance reflects a dynamic and active market.
Beyond the impressive IHSG figures, this positive market performance is also bolstered by an observed improvement in public confidence towards the government and the future economic outlook. Minister Purbaya noted that the economic slowdown experienced between June and September had previously indicated a degree of public dissatisfaction.
“There was a sense of public discontent directed at all of us, which made it very easy for people to take to the streets in protest,” he candidly remarked, acknowledging the challenges faced during that period.
However, Purbaya is now confident that a strategic government initiative—the placement of Rp 200 trillion in the banking sector—is effectively sparking renewed optimism for economic growth. He believes this substantial injection of funds is crucial for creating new momentum, ultimately restoring public satisfaction and trust in the government’s economic stewardship.
To solidify these gains, Minister Purbaya urged all stakeholders to diligently maintain the current momentum of economic recovery and growth. He firmly believes that with sustained effort and confidence, Indonesia’s economic growth rate can achieve even greater heights in the coming period.
“When the public is satisfied with the government, as they appear to be now, we should anticipate fewer protests going forward. This stability will enable the government, in collaboration with the DPR, to more effectively focus on accelerating growth and diligently implementing approved programs,” Purbaya concluded, outlining a vision for sustained progress.
Absorption of Rp 200 Trillion Boosts Real Sector
Corroborating this optimistic outlook, Febrio Nathan Kacaribu, Director General of Fiscal and Economic Strategy at the Ministry of Finance, provided an update on the government’s fund placement initiative. As of October 22, 2025, the realization of funds placed in the banking sector has reached Rp 167.6 trillion. “This represents 84% of the total allocated funds,” Febrio stated during a hearing with Commission XI of the House of Representatives (DPR) on Monday, November 17, 2025.
Febrio expressed strong optimism that the substantial absorption of these government funds will significantly contribute to economic growth, particularly in the fourth quarter of 2025. He highlighted that the absorbed amount is remarkably substantial, especially considering it has only been approximately five weeks since these funds were first deployed.
Elaborating on the impact, Febrio explained that these funds are strategically disbursed to both the general public and various businesses, creating a direct positive ripple effect on the real sector. Crucially, this disbursement also targets micro, small, and medium enterprises (MSMEs), thereby playing a dual role in boosting both consumption and investment across the economy.
“In the short term, the data already shows quite significant potential. We are actively driving increased investment and consumption, which in turn stimulates movement within the real sector,” Febrio affirmed, emphasizing the tangible benefits of the program.
He underscored his conviction that this proactive government measure, by channeling funds from the state treasury through credit facilities, will foster greater business sustainability across diverse sectors, ensuring a more resilient and dynamic Indonesian economy.
Summary
Indonesia’s Composite Stock Price Index (IHSG) recently achieved a record high of 8,602, signaling a robust economic recovery, according to Finance Minister Purbaya Yudhi Sadewa. He emphasized that consistent policies are crucial for positive economic prospects and noted increasing market strength, which is attracting long-term investors. This positive market trend, supported by substantial trading activity, reflects growing public confidence in the nation’s economy.
Minister Sadewa attributed renewed optimism to a strategic government initiative involving the placement of Rp 200 trillion into the banking sector to stimulate economic growth. Febrio Nathan Kacaribu confirmed that as of October 22, 2025, Rp 167.6 trillion, or 84% of these funds, had been realized. These funds are strategically disbursed to the public, businesses, and MSMEs, aiming to boost consumption, investment, and ensure business sustainability in the real sector.
