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March 18, 2025 | 05:43 pm
TEMPO.CO, Jakarta - Indonesia's finance minister Sri Mulyani Indrawati on Tuesday denied rumors of her imminent resignation and said she remained focused on her job and would continue to manage the state budget deficit at 2.53% of GDP this year, amid a plunge in the stock market.
Indonesian stocks fell as much as 7.1% on Tuesday and the rupiah slid to a two-week low against the dollar, pressured by concerns over the government's fiscal strategy and growth prospects a day before a central bank review of monetary policy.
The drop also led to a 30-minute trading halt on breaching the 5% mark, underscoring mounting concerns about President Prabowo Subianto's ambitious spending plans.
The drop also follows rumors of the resignation of Sri Mulyani Indrawati, which she dismissed on Tuesday.
"We are here, we are responsible," she told a press conference. "I will not step down."
The stock plunge is due to investor concerns over the share movement of Indonesia's state-owned companies, she said, adding investor trust remains strong and that improving tax revenues should calm the market.
Previously, Indonesia's chief economic minister Airlangga Hartarto said on Tuesday the country's economic fundamentals are strong and volatility in the stock market is common.
Jakarta shares hit 6,011.842 points, its lowest since September 2021, before paring losses to trade down 4% by 0646 GMT. It closed down 3.84% on Tuesday.
The benchmark confirmed bear market territory on February 28 after falling more than 20% from its September 19 peak.
REUTERS
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