Flooring Guide by Cinvex – JAKARTA – The outlook for the Indonesian stock market remains remarkably bright as the domestic economy continues to strengthen. Finance Minister Purbaya Yudhi Sadewa has projected that the Jakarta Composite Index (IHSG) has the potential to quadruple in value over the next few years.
With the IHSG currently positioned around the 7,000 level, the Minister estimates that the index could reach 28,000 during the 2029–2030 period, fueled by a sustained phase of economic expansion.
“From the lowest point to the peak of an expansion, we often see a four-to-five-fold increase. With the index currently at 7,000, it is entirely possible to reach 28,000,” Purbaya stated during the launch of the Smart Mutual Funds program and Mutual Fund Week 2026 at the Indonesia Stock Exchange (IDX) Main Hall in Jakarta on Monday (27/4/2026).
He noted that stock market performance is inextricably linked to fundamental economic strength. Consequently, the government is currently prioritizing accelerated growth to break free from the long-standing 5 percent stagnation trend.
To achieve this, several strategic initiatives are being implemented, ranging from the reinforcement of strategic projects to granting a more significant role to the Coordinating Minister for Economic Affairs, Airlangga Hartarto, in overseeing priority programs. Furthermore, the government has established a specialized task force to identify and eliminate barriers to economic growth.
On the fiscal front, signs of improvement are already emerging. Tax revenue for the first quarter of 2026 grew by approximately 20 percent, providing the government with the necessary fiscal space to further stimulate economic activity.
Purbaya highlighted the surge of the IHSG in the early 2000s, which saw a sharp increase over a decade, as a historical precedent. He believes this pattern could repeat if the current growth momentum is carefully maintained.
“Even amidst global volatility, we have managed to safeguard our domestic growth. This positive trajectory is set to continue,” he added.
Visitors observe a digital screen displaying the Jakarta Composite Index (IHSG) data at the Indonesia Stock Exchange (IDX), Jakarta, on Thursday (29/1/2026). – (Republika/Thoudy Badai)
However, the Finance Minister cautioned that a market surge is not a guarantee. Deepening the financial market remains a critical task, particularly regarding the need to increase the participation and influence of domestic investors.
The government is also exploring the possibility of providing incentives for the capital market, provided that programs aimed at increasing investor participation prove effective in the coming months.
For the general public, especially retail investors, this optimistic outlook presents a significant opportunity, though it still demands a cautious approach. Purbaya emphasized that stock market performance will ultimately follow the direction of the national economy.
In line with this optimism, the government is targeting higher economic growth for early 2026. Minister Purbaya Yudhi Sadewa mentioned that the economic pace in the first semester has the potential to exceed 5.5 percent.
“The first quarter will likely grow by 5.5 percent or more. We expect the second quarter to follow a similar pattern,” Purbaya explained during the same event.
This target serves as a clear signal that the government intends to move past the 5 percent growth trend of recent years. To reach this goal, authorities are strengthening the nation’s economic engines, from government spending to strategic national projects.
A key move in this strategy is the formation of a task force led by Coordinating Minister for Economic Affairs Airlangga Hartarto, tasked with dismantling the bottlenecks that have hindered growth. On the fiscal side, the Ministry of Finance is also optimizing revenue performance. Reforms within the Directorate General of Taxes and the Directorate General of Customs and Excise are beginning to show results, with tax revenue as of March 2026 recording a 20 percent growth.
For the wider community, this push is expected to translate into increased economic activity, particularly within the real sector. The government is also creating room to accelerate spending by ministries and agencies to ensure that capital flows more rapidly into the economy.
Purbaya believes the window of opportunity remains open, considering that budget realization at the start of the year has not yet been fully optimized. With accelerated spending and the right stimulus, he is confident that growth can be pushed even higher.
“While growth previously hovered around 5 percent, we expect it to move much faster in the future,” he said.
The government is specifically aiming for economic growth to reach approximately 5.7 percent in the second quarter of 2026. This figure is expected to serve as a foundation for maintaining a positive trend until the end of the year while simultaneously improving public welfare.
Summary
Finance Minister Purbaya Yudhi Sadewa projects that the Jakarta Composite Index (IHSG) could potentially reach the 28,000 level by the 2029–2030 period. This optimistic outlook is based on historical expansion patterns and the strengthening of Indonesia’s fundamental economic performance. To support this trajectory, the government is implementing strategic initiatives to break the current five percent growth trend and deepen the domestic financial market.
The Indonesian government targets economic growth exceeding 5.5 percent for the first half of 2026, supported by a significant 20 percent increase in tax revenue. Efforts to accelerate this expansion include the formation of a special task force to eliminate growth barriers and the reinforcement of national strategic projects. Officials emphasize that sustained economic momentum and increased domestic investor participation are essential for achieving these long-term market goals.