October 29, 2025 | 03:57 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa is optimistic that the Indonesia Composite Index (IHSG) will reach 9,000 by year-end, and 32,000 in 10 years. According to Purbaya, the market will respond positively to the improved economic forecast.
"The market people are clever, they'll analyze my statement, my policies, and they will implement them in their portfolios," said Purbaya at the 100 Indonesian Economists Seminar at Menara Bank Mega, Jakarta, on Tuesday, October 28, 2025. He admitted the presence of speculative stocks, but said stock fundamentals with significant values also exist.
Regarding market optimism, Purbaya explained the concept of a self-fulfilling prophecy, where positive economic predictions will prompt businesses to expand, and consumers to make purchases. Hence, he said, optimism has a real impact on the economy.
Purbaya also cited his policy of depositing Rp200 trillion in the state-owned banks under Himbara, claiming the initiative provides a positive sentiment in society.
Nevertheless, Purbaya said the positive sentiment will only gain results when his policies are implemented. "That's why when I speak, the money enters the system within two days. This is still an expectation, but when the monetary system moves, the impact begins to show," he said.
On Monday, October 27, 2025, the IHSG plummeted by 2.94 percent to 8,028. Analysts at Mirae Asset Sekuritas Indonesia said it was influenced by the plan to change on free-float by Morgan Stanley Capital International (MSCI) for Indonesian stocks.
"The news of MSCI's plan to change of free-float for Indonesian stocks became the background for the sharp correction of the IHSG," Mirae Asset Sekuritas said in a written statement on Monday, October 27, 2025.
In the first session, stocks such as PT Barito Pacific Tbk. (BRPT) weakened by 12.4 percent, PT Barito Renewables Energy Tbk (BREN) by 12.3 percent, and PT Petrosea by 11.9 percent. Analysts at Mirae Asset Sekuritas Indonesia said that the weakening of these conglomerate stocks put pressure on the market.
Adil Al Hasan contributed to the writing of this article
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