JCI Falls, Purbaya Assures Weakening No More Than Three Days
JAKARTA - Trading activities on the stock exchange were temporarily halted (trading halt) for two consecutive days following a sharp decline in the Composite Stock Price Index (IHSG).
For information, on Thursday, January 29, the JCI weakened again by 8 percent and was at 7,654.66. This condition made the exchange authority impose a trading halt at 09.26.01 Jakarta Automated Trading System (JATS) time.
Responding to this, Minister of Finance Purbaya Yudhi Sadewa explained that the decline in the JCI for the past two days was temporary.
According to him, this condition was triggered by the market's surprised reaction to MSCI's assessment of the Indonesia Stock Exchange (IDX), not because of fundamental economic problems.
"This is a temporary shock because our fundamentals are not a problem. If the stock exchange falls, I have warned you from the beginning. Clean up the stock exchange from gorengan stocks," he told the media, Thursday, January 29.
Purbaya also added that market shocks like this generally only last a short time, about two to three days, before conditions stabilize again.
"Usually 2 days, 2 and a half days, 3 days, it's over," he said.
In this situation, he advised investors to shift their investments to large-cap stocks with strong financial conditions or blue-chip stocks.
According to him, the movement of the stock prices is still relatively reasonable and has a solid foundation as the economy improves in the future.
"But the big ones are still there, the stocks, the blue chips. It hasn't gone too high. If you're afraid to run there. So if the economic foundation continues to improve in the future," said Purbaya.
Even though the market is volatile, Purbaya is still optimistic that the JCI will continue to strengthen and has the potential to reach 10,000 by the end of 2026.
"At the end of the year, it's (10,000). To the moon, don't be afraid. Our foundation is good. I'm the finance minister. Optimistic (JCI) 10,000, don't be afraid," he said.