Flooring Guide by Cinvex – , JAKARTA — The Indonesian Composite Index (IHSG) sharply retreated into negative territory following the unsettling news of a cabinet reshuffle for the incoming Prabowo-Gibran Red and White Cabinet. This significant shake-up notably includes a potential change in the crucial position of Finance Minister, sending ripples through the financial markets.
According to data from RTI Business, the IHSG plunged by 80.74 points, or 1.03%, settling at the 7,786.6 level today by 3:46 PM Western Indonesia Time (WIB). This significant downturn occurred mere moments after the Presidential Palace officially announced a restructuring across six key ministries within the Indonesian government.
Further details provided by Indonesian State Secretary Minister Prasetyo Hadi confirmed that the cabinet reshuffle would affect six specific portfolios. These include the Coordinating Ministry for Political and Security Affairs, the Ministry of Finance (Kemenkeu), the Ministry of Indonesian Migrant Worker Protection, the Ministry of Cooperatives, the Ministry of Youth and Sports, and the newly established Ministry of Hajj. The most closely watched change, however, centers on the Ministry of Finance.
Intense speculation surrounding the Ministry of Finance’s reshuffle is directly linked to persistent rumors that the esteemed Finance Minister, Sri Mulyani, will be replaced. Purbaya Yudhi Sadewa, the current Head of the Deposit Insurance Agency (LPS), has emerged as the leading candidate to succeed her, a prospect that has undoubtedly contributed to market unease.
Prior to the announcement of the cabinet reshuffle, the IHSG had maintained a positive trajectory, holding firmly in the green zone since the opening of trading earlier today, Monday, September 8, 2025. Throughout the day’s session, the Composite Index experienced fluctuations, trading within a range of 7,783.05 to a high of 7,934.99 before the news broke.
The market’s sharp decline was broadly felt, with only 259 stocks managing to strengthen, while a substantial 413 stocks weakened, and 131 remained stagnant. The IHSG’s fall was particularly exacerbated by significant drops in major blue-chip shares, including BBCA which slid 2.81%, BMRI plummeting 3.42%, BBRI down 1.25%, PANI sharply declining 5.42%, TLKM retreating 1.27%, and ASII weakening by 1.82%.
This isn’t the first time the Indonesian stock market has reacted strongly to news concerning its Finance Minister. A comparable IHSG slump occurred in mid-March 2025, triggered by earlier rumors of Sri Mulyani’s resignation. During that period, based on data from the Indonesia Stock Exchange (BEI) on the first trading session of Tuesday, March 18, 2025, the IHSG recorded a substantial fall of 395.87 points, or 6.12%, to reach the 6,076.08 level.
Summary
The Indonesian Composite Index (IHSG) experienced a sharp decline of 1.03% to 7,786.6 following the official announcement of a cabinet reshuffle. This significant downturn was largely driven by speculation surrounding a potential change in the crucial Finance Minister position. State Secretary Minister Prasetyo Hadi confirmed the reshuffle would affect six ministries, with the Ministry of Finance being the most closely watched.
Intense speculation points to Purbaya Yudhi Sadewa as the leading candidate to replace the esteemed Finance Minister, Sri Mulyani, contributing significantly to market unease. The market’s fall affected 413 stocks and notably impacted major blue-chip shares. This event mirrors a similar IHSG slump in March 2025, when earlier rumors of Sri Mulyani’s resignation also caused a substantial market drop.