Purbaya Responds as Export Agency Triggers IHSG Plunge

3 days ago 9

TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa expressed optimism that the Jakarta Composite Index (IHSG) will rebound once market players fully grasp the establishment of a state-owned enterprise (SOE) dedicated to exports. The IHSG closed at 6,318.5, marking its lowest level in a year, following President Prabowo Subianto's announcement regarding the creation of the new entity.

"Perhaps they don't yet realize the actual impact; when there is uncertainty, [investors are] usually afraid and tend to sell," Purbaya said after a coordination meeting at the Coordinating Ministry for Economic Affairs office in Jakarta on Thursday, May 21, 2026.

According to the finance minister, once market players gain clarity, they will understand its positive impact, and stock prices will recover. Purbaya noted that the dedicated export entity would curb practices such as under-invoicing, ensuring that financial figures accurately reflect genuine sales. Ultimately, commodity firms within the natural resources sector, particularly those listed on the Indonesia Stock Exchange, stand to benefit.

"Therefore, this should increase the valuation of companies listed on the stock exchange, and the IHSG will gradually rise significantly," he said.

Danantara Chief Investment Officer Pandu Sjahrir echoed a similar view. He emphasized that what investors need most right now is certainty. "They are looking for certainty and want to see results," he said. Pandu confirmed that the new policy closely factors in market developments, particularly within the equity sector.

The newly appointed entity tasked with managing natural resource commodity exports is PT Danantara Sumber Daya Indonesia (DSI), which will serve as the sole exporter for all natural resource commodities.

Following the announcement of the new entity's establishment, the benchmark stock index plummeted. By the close of the first trading session on Thursday afternoon, May 21, 2026, the IHSG dropped 2.71 percent to 6,147. Data from the Indonesia Stock Exchange showed that all indexes were parked firmly in the red zone. The sharpest decline was recorded in the basic materials sector index (IDXBASIC), which plunged by 6.34 percent. Meanwhile, the energy sector index (IDXENERGY) plummeted by 4.99 percent.

Read: When Will Danantara Announce PT DSI's Board of Directors?

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