JAKARTA - Capital market economist and practitioner Hans Kwee assessed that the volatility of the stock market due to the reshuffle in the Red and White Cabinet would be short-term in line with Indonesia's solid economic fundamentals.
He asked market players to trust the new Minister of Finance, namely Purbaya Yudhi Sadivewa as a replacement for Sri Mulyani Indrawati.
"It looks short-term, yes. So, we also have to trust Pak Purbaya as a substitute, which we believe he is also capable of having a reputation, to become Minister of Finance. We think this is short-term," Hans said when contacted by Antara, in Jakarta, Monday, September 8.
He said that the Minister of Finance Purbaya would not work alone at the Ministry of Finance in maintaining the posture of the State Revenue and Expenditure Budget (APBN) or keeping Indonesia's fiscal space under control.
He said that Purbaya would still be assisted by deputy ministers and other officials at the Ministry of Finance.
"This means that we cannot assume that the change of the captain is replaced, our economy is definitely chaotic. So, we think this is just a short-term sentiment in the market," said Hans.
On the other hand, he hopes that the new Minister of Finance can keep the budget deficit under control, as did Sri Mulyani previously.
Sri Mulyani's replacement must work hard to keep the budget deficit under control. From the beginning of the year, the foreign investor funds left the Indonesian market for fear that Indonesia's fiscal deficit had swelled. So far, Sri Mulyani is known to have a good reputation to maintain a budget deficit," said Hans.
He said, actually in today's trading, the Indonesian stock market showed a positive movement trend as social and political dynamics began to subside in the country.
The Composite Stock Price Index (JCI) was observed to have strengthened 0.58 percent or 45.60 percent to 7,912.94 percent at the close of trading session I.
However, at the close of trading session II, the JCI closed down 100.49 points or 1.28 percent to 7,766.84, with a trading frequency of 2,231,184 transactions and the number of shares traded at 36.65 billion shares worth Rp20.15 trillion. A total of 232 stocks rose, 451 stocks decreased, and 121 did not move in value.
SEE ALSO:
Regarding foreign sentiment towards the Indonesian stock market, Hans said the weakening US employment data for the August 2025 period caused US economic potential to slow down, but further increased expectations of the Fed's flower cuts in September 2025.
US Non-Farm Payrolls (NFP) in August 2025 was recorded at 22,000, or lower than the 75,000 estimated.
President Prabowo Subianto carried out reshuffles in five strategic ministries, as well as inaugurating a new agency official in the Red and White Cabinet.
The reshuffle took place at the Coordinating Ministry for Politics and Security, Ministry of Finance, Ministry of Protection for Indonesian Migrant Workers, Ministry of Cooperatives, and Ministry of Youth and Sports.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
