Flooring Guide by Cinvex – Finance Minister Purbaya Yudhi Sadewa has addressed the recent dip in the Jakarta Composite Index (JCI) following the government’s announcement regarding the establishment of a state-owned enterprise (BUMN) dedicated to the export of strategic commodities.
According to Purbaya, the market decline is largely driven by investor uncertainty, as many have yet to fully grasp the long-term benefits of this strategic policy. He remains confident that as the market gains a clearer understanding of how this initiative will improve corporate performance, investor sentiment will rebound.
“Perhaps investors are not yet aware of the true impact of this move. Uncertainty often leads to a knee-jerk reaction where investors sell off assets. However, once they understand the genuine advantages, we expect prices to recover,” Purbaya stated at the Office of the Coordinating Ministry for Economic Affairs in Jakarta on Thursday, May 21.
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Purbaya explained that the new export entity is designed to close loopholes related to under-invoicing in commodity export activities. Previously, a significant portion of corporate profits often remained hidden from domestic financial reports due to the influence of offshore subsidiaries owned by the same stakeholders.
“The presence of this export body will effectively curb under-invoicing. By ensuring that transactions are transparent, profits that were once diverted elsewhere will now be fully reflected in the companies’ core financial statements,” he noted.
Furthermore, Purbaya emphasized that increased transparency in sales transactions and valuation will lead to higher official profits. This, in turn, is expected to positively influence the market capitalization of listed companies.
“This will be a win-win for the companies. Listed firms should see a significant boost in their reported earnings, creating a double benefit for investors,” he added.
Looking ahead, Purbaya maintained that the government’s move to establish the state-owned export firm serves as a positive catalyst for the stock market in the medium to long term. By improving export governance, the initiative is set to enhance both the credibility and profitability of publicly traded companies within the natural resources sector.
“This should ultimately drive higher valuations for companies listed on the stock exchange. We expect to see a significant, gradual upward trend,” he asserted.
For context, data from RTI Business indicates that the JCI dropped 2.25 percent to the 6,227.41 level as of 11:19 WIB on Wednesday, May 20, immediately following President Prabowo Subianto’s announcement regarding the creation of the export state-owned enterprise, PT Danantara Sumber Daya Indonesia. The index had previously gained more than 1 percent to reach 6,459.55 before the speech was delivered.
In the market activity that followed, 135 stocks rose, 548 declined, and 127 remained stagnant. Throughout 2026, the JCI has experienced a cumulative decline of 27.64 percent.
Summary
Finance Minister Purbaya Yudhi Sadewa has dismissed concerns over the recent drop in the Jakarta Composite Index (JCI) following the government’s announcement of a new state-owned export entity. He attributed the market decline to initial investor uncertainty and a lack of understanding regarding the initiative’s long-term objectives. Purbaya remains confident that market sentiment will recover once investors recognize the potential for improved corporate performance and transparency.
The new export body is specifically designed to eliminate under-invoicing, ensuring that commodity profits are accurately reflected in domestic financial reports. By curbing the diversion of funds to offshore subsidiaries, the government expects this policy to boost the earnings and market capitalization of listed companies. Ultimately, officials anticipate that this improvement in export governance will serve as a positive catalyst for the stock market, driving higher valuations in the medium to long term.