Purbaya Optimistic JCI Tembus 9,000 End Of 2025

The Minister of Finance of the Republic of Indonesia, Purbaya Yudhi Sadive. (Photo: Doc. Antara)

JAKARTA - Minister of Finance of the Republic of Indonesia Purbaya Yudhi Sadives is optimistic that the Composite Stock Price Index (JCI) will reach 9,000 levels by the end of 2025. In fact, it has the potential to reach 32,000 in the long term.

Purbaya explained that every statement and policy issued will be carefully considered by market participants, and in the end, it will be reflected in the position of the investment portfolio.

He also did not deny that there is still a phenomenon of fried shares that can cause distortion of index movements, especially due to artificial price increases.

However, he remains optimistic because there are still many stocks with strong fundamentals and large market capitalization that are the main pillars of the JCI.

"That's why the index can go up. If you ask me (JCI) how? To the moon I said, It creates optimism too. At the end of this year how much? 9,000," he said at the Sarasehan 100 Economist Indonesia event, Tuesday, October 28.

Furthermore, he estimates that the JCI could penetrate 32,000 in the next ten years.

"In the next 10 years, how many? 32,000 People say I lied carelessly But it's based on 30 years of experience, the last 20 years, the last 25 years," he said.

According to Purbaya, in one full business cycle, the stock index can generally grow four to five times and the pattern will continue to repeat itself, as market behavior (behavioral system) fundamentally does not change much over time.

"Starting from the beginning of the business cycle to the back, at the end of the business cycle, it grew around 4-5 times. It happened like it keeps going. So I think the behavioral system doesn't change roughly that much. So I (don't) guess mangosteen, not a few, it's an economic calculation that there is a mathematical equal," he said.

Purbaya added that the world of economics often shows things that seem impossible, but can still be explained rationally if analyzed with a scientific approach.

"Economic science is an interesting knowledge. If you study it well, you can reach the level that was very high, which seemed to approach a shaman," he said.