JCI Rebounds From 2.5% Drop After Prabowo Replaces Purbaya - Tempo.co English
TEMPO.CO, Jakarta - Indonesia’s benchmark stock index reversed some of its earlier losses on Monday, September 14, as investors responded to the appointment of Suahasil Nazara as finance minister, with a market analyst saying his familiarity with fiscal management could support policy continuity.
The Jakarta Composite Index (JCI) had fallen as much as 2.5 percent during the session before recovering to close down 0.10 percent at 6,534.69. The LQ45 index, which tracks 45 of the most liquid and highly capitalized stocks on the Indonesia Stock Exchange (IDX), rose 9.31 points, or 1.43 percent, to 659.03.
"The market appears to have responded fairly positively because Suahasil Nazara is a figure who is very familiar with fiscal management and the structure of the Finance Ministry, so there is an expectation of policy continuity," capital market analyst Elandry Pratama told Antara in Jakarta on Monday.
Elandry said investor risk appetite had improved significantly, as reflected in the JCI's recovery from an earlier 2.5 percent decline to a marginal loss of 0.10 percent at the close.
However, he cautioned against attributing the JCI's performance entirely to the cabinet reshuffle, saying market sentiment was also influenced by global factors and commodity price movements.
Investors will also watch the direction of Suahasil's fiscal policies, particularly those concerning fiscal discipline, the state budget deficit, debt management, and coordination between fiscal and monetary policy, Elandry said.
"Going forward, the market will pay closer attention to the government's fiscal policy direction following the change and whether it can maintain investor confidence," he said.
President Prabowo Subianto officially inaugurated Suahasil as finance minister on Monday, replacing Purbaya Yudhi Sadewa, in a ceremony at the State Palace in Jakarta.
Suahasil's appointment was stipulated in Presidential Decree No. 97P of 2026 on the Dismissal and Appointment of the Finance Minister of the Red and White Cabinet for the remainder of the 2024-2029 term. The decree was issued by Prabowo on September 14, 2026.
Suahasil has served as deputy finance minister since October 25, 2019, under President Joko Widodo's Indonesia Onward Cabinet.
He continued in the position under Prabowo's administration and was reappointed deputy finance minister on October 21, 2024, as part of the Red and White Cabinet for the 2024-2029 term.
The JCI opened lower and remained in negative territory through the first trading session. It continued to trade in the red during the second session and closed with a marginal decline.
Based on the IDX-IC sectoral indices, three sectors gained on Monday. The financial sector posted the steepest decline among the sectors that fell, down 0.74 percent, followed by the industrial and primary consumer goods sectors, which declined 0.40 percent and 0.02 percent, respectively.
Eight sectors declined, with the health sector posting the largest drop at 2.15 percent. It was followed by the energy and infrastructure sectors, which fell 1.49 percent and 1.45 percent, respectively.
The stocks posting the largest gains included SEMA, LAPD, MPIX, ALKA, and FORU. The biggest decliners were EMAS, ASLI, SRAJ, BYAN, and LUCY.
Trading volume reached 34.25 billion shares across 2.101 million transactions, with a total transaction value of Rp17.98 trillion. A total of 229 stocks gained, 455 declined, and 279 were unchanged.
Elsewhere in Asia, the Nikkei fell 0.58 percent to 63,641.00, the Shanghai Composite declined 0.07 percent to 3,885.33, and the Hang Seng rose 0.45 percent to 24,917.60.
South Korea's Kospi slipped 0.07 percent to 6,684.37, while Singapore's Straits Times Index gained 0.32 percent to 5,714.37.
