Amid Market Turmoil, Government Reaffirms Commitment to Maintaining Economic Growth

JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto hopes that market players will understand the current situation surrounding the weakening of the Jakarta Composite Index (JCI) at the start of trading on Monday, September 1.

"Our economic growth is still on a positive path. We hope that issuers, stock exchange members, and investors understand what is happening today," he said during the Indonesian Capital Market Stability Dialogue with the Coordinating Ministry for Economic Affairs on Monday, September 1.

Airlangga explained that capital market movements are influenced by two main factors: sentiment and economic fundamentals.

According to him, despite the current dynamics, Indonesia's economic fundamentals remain strong, so the pressure is expected to be temporary.

"Regarding the current situation, with solid economic fundamentals, the government believes the impact of the current socio-political dynamics on the economy is expected to be short-term, and the government continues to encourage optimism for the medium and long term," he said.

He emphasized that the government continues to actively communicate with issuers, stock exchange members, and investors to ensure a conducive investment climate and that all activities proceed according to plan.

"The government is committed to responding to developments and the aspirations of the public through constructive channels. This supports the government's efforts to maintain stability and always pay attention to the aspirations of various community groups," he said.

He also urged entrepreneurs to remain calm and optimistic, emphasizing that we all have a moral responsibility to maintain the sustainability of the national economy so that job creation continues, existing workers are protected, and public welfare can continue to be improved, as these are the government's top priorities.

Regarding the recent demonstrations, Airlangga emphasized that expressing aspirations is part of democracy, but must be done in an orderly and peaceful manner.

"Of course, we hope that a peaceful and respectful situation will significantly help accelerate economic growth, and we must all maintain a conducive atmosphere and minimize the impact on the community's economy," he explained.

According to data from the Indonesia Stock Exchange, the Jakarta Composite Index (JCI) opened lower by 3.44 percent, or 269.15 points, to 7,561 at 9:01 a.m. Western Indonesian Time. Trading volume reached 2.22 million shares, valued at IDR 2.07 billion, at the start of trading.