Flooring Guide by Cinvex – Finance Minister Purbaya Yudhi Sadewa is urging market participants and the general public to maintain confidence in the Indonesian capital market. He remains optimistic that the Jakarta Composite Index (JCI) will rebound as the nation continues to strengthen its core economic foundations.
According to Purbaya, the government is currently undertaking serious structural reforms across various sectors. These efforts are designed to fortify Indonesia’s economic framework in the long term, which is expected to have a direct, positive impact on the performance of the domestic stock market.
“The President and his administration are committed to serious economic reform; we are not just going through the motions. We are working diligently to resolve underlying issues across the board. The fundamental reality is that our economic foundation is steadily improving, and historically, as the economy strengthens, the stock index tends to rise accordingly,” Purbaya stated during a virtual discussion on Friday (May 22).
Purbaya explained that according to business cycle theory, economies naturally fluctuate through periodic peaks and troughs. During expansionary phases, sustained economic growth often persists for years, providing a significant tailwind for financial market performance.
Looking ahead, Purbaya views the outlook for the Indonesian economy through 2028–2030 as highly promising. He anticipates that both economic growth and the stock market have the potential to multiply significantly from their previous lows.
Regarding current market volatility, Purbaya suggests that the stock market is approaching its bottom. He advises investors against succumbing to panic over short-term fluctuations. “From the lowest point to the peak, our economy has the potential to grow four to five times over. If the previous low was around 7,000, the upside potential is substantial. Based on my assessment of short-term technical analysis, we are either at the bottom or very close to it,” he noted.
Purbaya emphasized that as long as the government continues to solidify the nation’s economic bedrock, the JCI is positioned for a gradual, upward trajectory. Consequently, he encourages investors to remain confident in their long-term investment strategies.
“There is no reason for investors to fear long-term commitments. Focus on the strength of our economic foundation. As long as I remain in this position, the economic foundation will continue to improve. The JCI is bound to rise gradually, so there is no need for concern,” he concluded.
Summary
Finance Minister Purbaya Yudhi Sadewa has expressed optimism regarding the Indonesian capital market, urging investors to remain confident despite recent volatility. He emphasizes that the government is actively pursuing structural reforms to strengthen the national economic foundation, which historically correlates with improved performance in the Jakarta Composite Index (JCI).
Purbaya believes the market is currently near its bottom and anticipates significant growth potential for the economy through 2030. He advises investors to avoid panic over short-term fluctuations and maintain their long-term strategies, as the ongoing economic improvements are expected to drive a gradual and sustained rise in the JCI.