JAKARTA — Coordinating Minister for Economic Affairs Airlangga Hartarto has dismissed concerns that the weakening rupiah and volatility in the Jakarta Composite Index (IHSG) are linked to the government’s plan to establish an export agency or the current trade balance deficit.
Airlangga addressed these concerns following a limited cabinet meeting with President Prabowo Subianto at the Presidential Palace in Jakarta on Friday, May 22, 2026.
Responding to economists who suggested that the formation of a state export body and external trade conditions were putting pressure on financial markets, Airlangga maintained that current market fluctuations remain within reasonable limits. He pointed to the recent performance of the stock market as evidence of its resilience, stating, “First of all, look at the IHSG today; it is in the green.”
According to the Minister, the recent downward pressure on the IHSG was primarily driven by market corrections following changes in the status of certain issuers listed by rating agencies. “Actually, the recent movement in the IHSG was due to several issuers exiting the ratings agency’s index. Such corrections are a normal part of market dynamics,” he explained.
When explicitly asked if the financial pressure was triggered by the planned formation of a government export entity or trade balance concerns, Airlangga firmly denied the correlation with a concise, “No. No.”
The government is currently preparing a centralized export scheme under the PT Danantara Sumber Daya Industri (DSI), which will oversee strategic commodities including minerals and palm oil. While this policy initially sparked anxiety among some market participants regarding potential impacts on trade flows and foreign exchange, the administration maintains that the initiative is designed to strengthen foreign exchange management and enhance the coordination of national strategic commodity trade.
Furthermore, industry stakeholders, including those in the coal and palm oil sectors, have reportedly expressed a positive outlook regarding the formation of the DSI, viewing it as a strategic move to bolster national economic interests.
Summary
Coordinating Minister for Economic Affairs Airlangga Hartarto has refuted claims that the upcoming establishment of the PT Danantara Sumber Daya Industri (DSI) export agency or trade balance issues are responsible for the recent volatility in the Jakarta Composite Index (IHSG) and the rupiah. He asserted that current market fluctuations are within normal limits and noted that the IHSG has recently shown signs of resilience. According to the Minister, the temporary downward pressure on the stock market was primarily caused by routine index corrections from rating agencies rather than government policy shifts.
The government maintains that the new centralized export scheme is designed to enhance the coordination of strategic commodities, such as minerals and palm oil, while strengthening national foreign exchange management. Despite initial market concerns, industry stakeholders in the coal and palm oil sectors have expressed support for the initiative. Airlangga dismissed any correlation between the formation of the export entity and current financial market instability, confirming the administration’s commitment to the policy.
