Rancak Media – Finance Minister Purbaya Yudhi Sadewa has called on investors and the general public to remain confident in the Indonesian capital market. He remains optimistic that the Jakarta Composite Index (IHSG) will stage a robust recovery, driven by the ongoing strengthening of the nation’s economic foundations.
According to Purbaya, the government is currently implementing serious, wide-ranging economic reforms designed to fortify Indonesia’s long-term fiscal and structural integrity. These strategic efforts are expected to have a direct, positive impact on the performance of the domestic stock market.
“The President and I are genuinely committed to these economic reforms; we are not playing games. I have been tasked with overseeing these improvements across various sectors, and there is strong cross-departmental collaboration. The clear objective is to ensure that our economic foundations continue to improve. Historically, as the economy strengthens, the stock market index follows an upward trajectory,” Purbaya stated during an online discussion held on Friday, May 22.
Purbaya further explained the nature of business cycles, noting that economies naturally fluctuate through periodic peaks and troughs. During expansionary phases, sustained economic growth often persists for years, providing a natural catalyst for financial market growth.
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Looking ahead, Purbaya views the prospect of the Indonesian economy through 2028-2030 as exceptionally promising. He anticipates that both economic growth and stock market performance could eventually increase several-fold compared to previous lows.
The Finance Minister believes that the stock market is currently nearing its “bottom,” urging investors to avoid panic in the face of short-term volatility. “From the lowest point to the peak, our economy has the potential to grow four to five times over. If the previous low was, for instance, 7,000, the upside potential remains excellent. Based on my assessment of short-term technical analysis, we are either approaching the bottom or may have already reached it,” he explained.
Purbaya emphasized that as long as the government continues to reinforce the bedrock of the economy, the IHSG is poised for a gradual but consistent climb. He encouraged the public to maintain a long-term investment perspective.
“There is no reason to fear long-term investment. Just look at the strength of our economic fundamentals. As long as I am the Finance Minister, the economic foundation will continue to improve. The IHSG is destined to rise steadily, so there is no cause for concern,” he concluded.
Summary
Finance Minister Purbaya Yudhi Sadewa has urged investors to maintain confidence in the Indonesian capital market, expressing optimism that the Jakarta Composite Index (IHSG) will experience a robust recovery. This positive outlook is supported by the government’s commitment to comprehensive economic reforms aimed at strengthening the nation’s long-term fiscal and structural integrity. Purbaya emphasizes that these improvements are vital for fostering sustainable growth and boosting market performance.
Pointing to the cyclical nature of economies, Purbaya suggests that the market is nearing its bottom and advises investors to avoid panic during periods of short-term volatility. He remains highly optimistic about Indonesia’s economic trajectory through 2030, projecting significant growth potential for both the economy and the stock market. Ultimately, he encourages stakeholders to adopt a long-term investment perspective, assuring them that the government’s focus on economic fundamentals will drive a consistent upward trend for the index.
