Airlangga Claims The National Capital Market Is Still Strong

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Aris Nurjani/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto said that in terms of fundamentals, it is very important because in the capital market there are two main factors that affect movement, namely fundamental factors and market sentiment.

He emphasized that fundamentally, the Indonesian economy currently has solid resilience.

"From a fundamental point of view, this is important because of course we understand that the capital market has two important things besides fundamentals andACTS. However, it is important to emphasize that fundamentally Indonesia has solid resilience," he said in the Indonesian Capital Market Stability Dialogue with the Coordinating Ministry for the Economy, Monday, September 1.

He explained that in the second quarter of this year, Indonesia recorded economic growth of 5.12 percent year-on-year.

According to him, one of the main indicators is the Purchasing Managers' Index (PMI), which is currently back above level 50, to be precise at 51.5. This shows an expansion in the manufacturing sector, which is driven by increased output and new demand.

As a comparison in July 2025, PMI is at 49.2, so the current achievements show significant improvements.

He added that in terms of the stock market, the Composite Stock Price Index (JCI) showed a positive trend where on August 25, the JCI recorded a record high of 7,926, an increase of 0.87 percent.

Then on August 28, the JCI rose again to 7,952 or an increase of 0.2 percent. Even though on the 29th day there was a decrease of 1.53 percent to 7,830.

"Then we also see controlled inflation at 2.37 percent and today the inflation rate will also be released in August and this number will also be well under control," he explained.

Airlangga added that until August 29, the rupiah exchange rate was relatively stable in the range of Rp. 16,490 per US dollar, or appreciated by 2.35 percent year to date.

He added that Indonesia's trade balance also still recorded a consistent surplus, and today the latest data will be released which is estimated to remain positive.

"Then domestic consumption is still strong, people's mobility remains high. The increase in retail spending both offline and online has increased and the government continues to encourage stimulus for purchasing power, especially ahead of Christmas and New Year. And this August the 17 percent discount program at retail centers. This is also running and becoming an event that increases trade," he explained.

Airlangga added that in the investment sector, imports of capital goods grew significantly by 32.5 percent in the second quarter, reflecting the optimism of business actors.

He said that the Industry also showed positive growth with the industrial PMI rising 5.08 percent year-on-year and this indicates a greater potential expansion in the third quarter.

In addition, Airlangga said that the circulation of money and transaction volume in various provinces showed that economic growth and activity continued to expand spatially throughout Indonesia.