Prabowo Summons Airlangga to Palace Amid IHSG Crash
- Jakarta - On Tuesday, March 18, 2025, Coordinating Minister for Economic Affairs, Airlangga Hartarto, was summoned to the Presidential Palace by President Prabowo Subianto.
- Airlangga's arrival at the Palace, around 15:50 WIB, coincided with a significant drop in the Jakarta Composite Index (IHSG).
- Addressing reporters upon arrival, Airlangga stated, "Ya tentu perkembangan perekonomian akan dilaporkan ke Bapak Presiden," indicating that the economic developments woudl be reported to the President.
Indonesia‘s Economic Minister Addresses Market Concerns Amidst IHSG Drop
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Jakarta – On Tuesday, March 18, 2025, Coordinating Minister for Economic Affairs, Airlangga Hartarto, was summoned to the Presidential Palace by President Prabowo Subianto.
Airlangga’s arrival at the Palace, around 15:50 WIB, coincided with a significant drop in the Jakarta Composite Index (IHSG). The IHSG plummeted, reaching 420.97 points, a 6.58 percent decrease, settling at 6,046 during Tuesday’s trading session.
Economic Assessment adn Market Volatility
Addressing reporters upon arrival, Airlangga stated, “Ya tentu perkembangan perekonomian akan dilaporkan ke Bapak Presiden,” indicating that the economic developments woudl be reported to the President.
Despite the IHSG‘s decline, Airlangga asserted the basic strength of the Indonesian economy.
airlangga commented on the broader context of market fluctuations, stating, ”Kalau penurunan ini kan di berbagai negara, saham naik-turun biasa. Saat saham-saham yang negara lain minggu-minggu lalu turun cukup dalam, mungkin sekarang (IHSG). Kemarin kita belum terlalu kena, baru berimbas satu-dua hari ini.”
Trading Halt Triggered by Market Downturn
Earlier on Tuesday, March 18, the IHSG experienced a sharp decline at 11:49 WIB, falling 420.97 points, or 6.58 percent, to a level of 6,046. This downturn triggered a temporary trading halt on the stock exchange to mitigate market volatility.
This made it the index with the deepest weakening compared to other indexes in Asia. At one point,the IHSG had fallen by more than 3.4 percent before slightly recovering. This contrasted sharply with the performance of other stock indices in Asia, wich saw significant gains.
Such as, Japan’s Nikkei 225 index jumped 1.44 percent, while stock indices in Malaysia (KLSE) and Singapore (STI) also recorded gains of 1.04 percent and 1 percent, respectively.
Indonesia’s Economic Response to IHSG Volatility: A Q&A Guide
This article addresses concerns surrounding the Jakarta Composite Index (IHSG) drop on March 18, 2025, and the Indonesian government’s response.
Understanding the IHSG Drop and Government Response
What caused the IHSG to drop on March 18, 2025?
On Tuesday, March 18, 2025, the IHSG experienced a notable decline, plummeting by 420.97 points, or 6.58 percent, to settle at 6,046 during the trading session. This sharp downturn led to a temporary trading halt on the indonesia Stock Exchange (BEI). According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the drop was not unique to Indonesia, noting that other countries had experienced similar market corrections in previous weeks. He suggested that the IHSG’s decline might have been a delayed reaction to global market trends.
What was Airlangga hartarto’s response to the IHSG decline?
Coordinating Minister for Economic Affairs Airlangga Hartarto addressed reporters, stating that he would report the economic developments to President Prabowo Subianto. Despite the IHSG’s drop, Airlangga asserted the essential strength of the Indonesian economy. He also commented on the broader context of market fluctuations,suggesting that the IHSG’s decline was part of a global trend of stock market volatility.
What is a trading halt and why was it implemented?
A trading halt is a temporary suspension of trading on a stock exchange,implemented to mitigate excessive market volatility. In the case of the March 18,2025,IHSG drop,the trading halt was triggered by a sharp decline of 6.58%. The purpose of a trading halt is to give investors time to assess the situation and prevent panic selling, which can further destabilize the market. According to tvOnenews.com, the trading halt was triggered after the IHSG dropped 5%.
How did the IHSG’s performance compare to other Asian markets?
On March 18, 2025, the IHSG experienced the deepest weakening compared to other indexes in Asia. While the IHSG struggled, other Asian markets saw gains. Japan’s nikkei 225 index jumped 1.44 percent, while stock indices in Malaysia (KLSE) and Singapore (STI) recorded gains of 1.04 percent and 1 percent, respectively.
Trading Halt Policy
What is the current trading halt policy in Indonesia, and is it under review?
According to kontan.co.id,Coordinating Minister for Economic Affairs Airlangga Hartarto indicated that the trading halt policy,notably the 5% decline threshold,is under review. He noted that the policy was initially implemented during the COVID-19 pandemic and may need adjustments to reflect current economic conditions.
Why is Indonesia considering changes to the trading halt policy?
The review of the trading halt policy suggests a need to adapt market regulations to evolving economic realities. The policy, initially designed as a response to the COVID-19 crisis, might be reassessed to ensure it aligns with the current market dynamics and prevents needless disruptions while still protecting investors.
Key Takeaways from the IHSG Event
What does the IHSG drop signify for the Indonesian economy?
While a significant drop in the IHSG can cause concern among investors, Airlangga Hartarto emphasized that the fundamentals of the Indonesian economy remain strong.
What actions can investors take during market volatility?
During periods of market volatility, investors should:
Stay informed: Keep abreast of market news and economic developments.
Avoid panic selling: Resist the urge to make impulsive decisions based on fear.
Diversify investments: spread investments across different asset classes to mitigate risk.
Seek professional advice: Consult with a financial advisor for personalized guidance.
Summary of Key events and Responses
| Event | Date | Details | Response |
| :——————————– | :————- | :——————————————————————————————————————————— | :——————————————————————————————————————– |
| IHSG Plummets | March 18, 2025 | Drops 6.58% to 6,046, a decrease of 420.97 points. | Trading halt implemented to mitigate market volatility. |
| airlangga Hartarto’s Statement | March 18, 2025 | Acknowledges the drop, asserts Indonesian economy’s strength, notes global market trends. | Reports economic developments to President Subianto. |
| Trading Halt Policy Under Review | March 18, 2025 | Coordinating Minister indicates the 5% threshold for trading halts may be re-evaluated, as the policy was implemented during COVID-19. | Aims to adapt market regulations to current economic conditions, prevent unnecessary disruptions, and protect investors. |