Purbaya sees no need for IHSG intervention amid selloff

  Indonesia’s finance minister said no special measures are being prepared to support stocks despite a sharp selloff, arguing that strong economic fundamentals remain the key driver of equity valuations.

Finance Minister Purbaya Yudhi Sadewa said the government has no plans to intervene in the Jakarta Composite Index, known as the IHSG, as markets come under pressure.

“As far as I am concerned, there will be no intervention,” Sadewa said at the Parliamentary Complex on Thursday.

Strong and improving economic fundamentals should underpin stock valuations, he said.

The benchmark IHSG extended losses in Thursday trading, dropping more than 4 percent as investor sentiment weakened.

Sadewa previously expressed confidence that the index would recover, supported by Indonesia’s underlying economic strength.

He said a range of economic indicators could help lift the market back into positive territory.

Among them is inflation, which stood at 3.08 percent year-on-year in May 2026, remaining within Bank Indonesia’s target range of 2.5 percent plus or minus 1 percentage point.

Tax revenue reached Rp646.3 trillion (US$39.7 billion) as of April 30, rising 16.1 percent from a year earlier, according to government data.

Sadewa said recent volatility reflects short-term concerns tied to domestic issues rather than a deterioration in economic fundamentals.

He added that the government remains committed to preserving economic growth and maintaining stable market sentiment.

As of 10:02 a.m. Jakarta time on Thursday, the IHSG had fallen 246.14 points, or 4.14 percent, to 5,694.91.

Capital market analyst Hendra Wardana, founder of Republik Investor, said the steep decline signals a significant loss of investor confidence.

According to Wardana, the market downturn has been driven not only by external pressures but also by domestic factors that have intensified selling across Indonesian equities.