Sri Mulyani Speaks on IHSG Drop
- Jakarta – The Finance Minister, Sri Mulyani, has addressed concerns regarding the notable drop in the IHSG (Indonesia Stock Exchange Composite Index).
- According to Sri Mulyani, this downturn in the IHSG can be attributed to a combination of domestic and international factors.
- The Finance Minister made these remarks during a press conference at the tax Directorate General Office.
government Addresses Market Turmoil as IHSG plummets
Table of Contents
- government Addresses Market Turmoil as IHSG plummets
- Government Addresses Market Turmoil as IHSG Plummets: A Q&A
- Q&A on the IHSG Decline and Government Response
- Q: What caused the sharp decline in the IHSG on March 18, 2025?
- Q: Why was the trading halted on the stock exchange?
- Q: How did the IHSG performance compare to other Asian markets?
- Q: What is the government’s response to the decline in the IHSG?
- Q: What are the concerns regarding State-Owned Enterprises (BUMNs)?
- Q: How is the government addressing concerns about BUMN performance?
- Q: What is the government’s message to private companies regarding their declining stock values?
- Q: What reassurance did Sri Mulyani give regarding government bonds?
- Q: What is the significance of maintaining the budget deficit at 2.53% of GDP?
- Key Takeaways:
- Q&A on the IHSG Decline and Government Response
Published:
Finance Minister Responds to IHSG Decline
Jakarta – The Finance Minister, Sri Mulyani, has addressed concerns regarding the notable drop in the IHSG (Indonesia Stock Exchange Composite Index). On Tuesday, march 18, the IHSG experienced a sharp decline of over 6 percent during the first trading session, leading to a temporary suspension of trading to mitigate market volatility.
According to Sri Mulyani, this downturn in the IHSG can be attributed to a combination of domestic and international factors.
Untuk tadi pergerakan saham, tentu juga kita melihat dari sisi global dan nasional, dibandingkan. Apakah ada faktor yang sifatnya khusus di dalam negeri dibandingkan regional maupun global,
Sri Mulyani, Finance Minister, speaking at a press conference on March 18, 2025
The Finance Minister made these remarks during a press conference at the tax Directorate General Office.
Domestic Sentiments and BUMN Performance
Domestically, concerns have arisen regarding waning public confidence in several State-Owned enterprises (BUMN). This sentiment is reflected in the recent decline in the stock prices of state-owned companies.
In response, Sri Mulyani has assured investors that BUMNs are being managed effectively and that there is no cause for alarm. She emphasized the importance of professional and transparent management of these enterprises.
Kami menyampaikan pesan ke BUMN dan juga Danantara yang nanti mengelola BUMN itu, bahwa kepastian pengelolaan BUMN secara profesional, transparan, seperti yang selama ini Presiden Prabowo sampaikan. Itu menjadi prinsip yang akan terus dilakukan,
Sri Mulyani
The former Managing Director of the World bank also urged officials within each BUMN to communicate effectively with the public regarding the management of their respective companies.
Dan tentu manajemen dari BUMN-BUMN tersebut juga bertanggung jawab untuk bisa menjelaskan kepada masyarakat sehingga mereka juga memiliki tingkat kepercayaan terhadap perusahaan tersebut,
Sri Mulyani
Private Sector Performance and Market transparency
Regarding the decline in the stock values of private companies, Sri Mulyani emphasized the responsibility of each company to explain and reassure the public of their strong fundamentals.
Kalau ada perusahaan swasta yang bergerak cukup dalam hari ini, tentu itu spesifik mengenai perusahaan tersebut.Namun saya tegaskan bahwa pondasi dari perusahaan-perusahaan go public harus terus di-update ke market,sehingga market punya assessment terhadap valuasi yang fair dan baik,itu merupakan kewajiban kita bersama,
Sri Mulyani
She stressed the importance of publicly listed companies providing updated information to the market to ensure fair and accurate valuations.
IHSG Plunge and regional Comparison
Earlier on Tuesday, March 18, the IHSG plummeted at 11:49 AM, falling by 420.97 points, or 6.58 percent, to a level of 6,046. This sharp decline triggered a trading halt on the stock exchange to curb market volatility.
This made the IHSG the worst-performing index in Asia. the IHSG had initially fallen by more than 3.4 percent before slightly recovering. This contrasted sharply with the performance of other Asian stock indices, which saw significant gains.
for example, Japan’s Nikkei 225 index rose by 1.44 percent, while the stock indices in Malaysia (KLSE) and Singapore (STI) also recorded gains of 1.04 percent and 1 percent, respectively.
Government Bonds remain Attractive
Amidst the market turmoil, Sri Mulyani assured that government bonds still attract investors’ interest. She also assured that government finances would be well managed. The former Managing Director of the World bank ensured that the 2025 State budget deficit will be maintained at 2.53 percent of the Gross Domestic Product (GDP).
Government Addresses Market Turmoil as IHSG Plummets: A Q&A
This article addresses the recent market volatility in Indonesia, focusing on the sharp decline of the IHSG (Indonesia Stock Exchange Composite Index) and the government’s response. We’ll explore the factors contributing to the decline, the concerns surrounding State-Owned Enterprises (BUMNs), and the government’s assurance to investors.
Q&A on the IHSG Decline and Government Response
Q: What caused the sharp decline in the IHSG on March 18, 2025?
A: On March 18, 2025, the IHSG plummeted by 420.97 points, or 6.58 percent, to 6,046, triggering a trading halt. Finance Minister sri Mulyani attributed this downturn to a combination of domestic and international factors, suggesting a specific domestic factor possibly contributed more significantly than regional or global influences.
Q: Why was the trading halted on the stock exchange?
A: The trading halt was implemented as a circuit breaker to curb excessive market volatility following the meaningful drop in the IHSG. This mechanism is designed to prevent panic selling and allow investors time to reassess market conditions.
Q: How did the IHSG performance compare to other Asian markets?
A: The IHSG was the worst-performing index in Asia on that day. While the IHSG initially fell by more than 3.4 percent before slightly recovering, other Asian stock indices experienced gains. For example, Japan’s Nikkei 225 index rose by 1.44 percent, while the stock indices in Malaysia (KLSE) and Singapore (STI) recorded gains of 1.04 percent and 1 percent, respectively.
Q: What is the government’s response to the decline in the IHSG?
A: Finance Minister Sri Mulyani addressed the concerns regarding the IHSG decline in a press conference. She emphasized the importance of analyzing both global and national factors contributing to the situation. She also offered assurances regarding the management of BUMNs and the strength of government bonds.
Q: What are the concerns regarding State-Owned Enterprises (BUMNs)?
A: There are concerns about waning public confidence in several BUMNs. This sentiment is reflected in the recent decline in the stock prices of state-owned companies. The article suggests these concerns likely contributed to the domestic factors impacting the IHSG.
Q: How is the government addressing concerns about BUMN performance?
A: Sri mulyani has assured investors that BUMNs are being managed effectively and that there is no cause for alarm. She emphasized the importance of professional and obvious management of these enterprises, aligning wiht President Prabowo’s directives. She also urged BUMN management to communicate effectively with the public to build and maintain trust. Danantara, an entity that manages BUMNs, was also addressed, reiterating the need for professional and transparent management.
Q: What is the government’s message to private companies regarding their declining stock values?
A: Sri Mulyani emphasized the responsibility of each private company to explain and reassure the public of their strong fundamentals. She stressed the importance of publicly listed companies providing updated information to the market to ensure fair and accurate valuations.
Q: What reassurance did Sri Mulyani give regarding government bonds?
A: sri Mulyani assured that government bonds continue to attract investors’ interest and that government finances would be well managed. She also confirmed that the 2025 State budget deficit would be maintained at 2.53 percent of the Gross Domestic Product (GDP).
Q: What is the significance of maintaining the budget deficit at 2.53% of GDP?
A: Maintaining a defined budget deficit is a key indicator of fiscal responsibility and economic stability. It’s crucial for investor confidence and ensures that the government’s borrowing remains sustainable.
Key Takeaways:
| Topic | Key Information |
|———————-|——————————————————————————————————-|
| IHSG Decline | Dropped 6.58% on March 18, 2025, triggering a trading halt. |
| Contributing Factors| Domestic concerns about BUMN performance, plus global and regional factors. |
| BUMN Concerns | Waning public confidence reflected in declining stock prices. |
| Government Response| Reassurance on BUMN management, emphasis on openness, and commitment to fiscal responsibility. |
| Private Sector | responsibility to update the market and maintain investor trust. |
| Government Bonds | Remain attractive to investors; budget deficit to be maintained at 2.53% of GDP. |