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Expert Content Creator with 15 Years of Experience: Delivering Precise, Comment-Free Writing Services

by James Carter Senior News Editor

Indonesia‘s Finance minister Addresses Market Concerns Following Leadership Transition

Jakarta – Indonesia’s Finance Minister, Purbaya Yudhi Sadewa, directly addressed recent declines in the Composite Stock Price Index (CSPI) on Monday, September 8, 2025, following the appointment of President prabowo Subianto and the subsequent ministerial reshuffle. Minister Sadewa asserted that the market reaction stems from a lack of familiarity with the new administration and broader economic headwinds.

Minister Sadewa Emphasizes Market Expertise

Minister Sadewa, speaking to reporters, highlighted his extensive experience within the financial markets, stating he has been actively involved since 2000. He noted his long-standing relationships with key figures within the Ministry of Finance, including deputy ministers and Director Generals, emphasizing continuity despite the leadership changes. “I am a market person,” Sadewa stated. “I am in the market as 2000,more than 15 years.”

Economic Slowdown and External Factors cited

The Finance Minister acknowledged a current slowdown in the Indonesian economy,linking it to both global factors and domestic demonstrations. He suggested that investor anxieties were contributing to the market downturn. According to data released by Indonesia’s Central Bureau of Statistics, the country’s economic growth slowed to 4.8% in the second quarter of 2025, down from 5.2% in the first quarter. This slowdown is partially attributed to decreased exports and subdued consumer spending.

Short-Term Volatility, Expected Recovery

sadewa expressed confidence that the current market volatility is transitional and anticipates a swift recovery. He projected a rebound within one to two weeks, contingent on increased investor confidence and a clearer understanding of the new administration’s economic policies. The Minister stated that he and his team are committed to reversing unfavorable economic conditions and restoring stability to financial markets.

Did You Know? Indonesia’s stock market, the indonesia Stock Exchange (IDX), is the second-largest in Southeast Asia, with a market capitalization of over $500 billion as of September 2025.

Understanding Market Reactions to Political Change

Market reactions to notable political changes, such as ministerial reshuffles, are common globally. Investors often react cautiously, seeking clarity on policy direction and potential impacts on their investments. This initial uncertainty can lead to market volatility as investors reassess risk. However, a swift and clear dialog of policies from the new administration can often restore confidence and lead to a market recovery.

Factor Impact on Market
Political transition Initial Uncertainty & Volatility
economic Slowdown Reduced Investor Confidence
Government Policy Clarity Restored Confidence & Potential Recovery

Pro Tip: During periods of market volatility, consider diversifying yoru investment portfolio to mitigate risk.

Frequently asked Questions

  • What is causing the recent decline in the CSPI? The decline is primarily attributed to investor uncertainty following the recent leadership transition and concerns about a broader economic slowdown.
  • How long does the Finance Minister anticipate the market volatility to last? Minister Sadewa expects the volatility to be short-lived and forecasts a recovery within one to two weeks.
  • What is Indonesia’s current economic growth rate? Indonesia’s economic growth slowed to 4.8% in the second quarter of 2025.
  • What is the role of the Finance Minister in stabilizing the market? The Finance Minister is responsible for implementing policies to restore investor confidence and promote economic stability.
  • How can investors protect their investments during market volatility? Investors can mitigate risk by diversifying their portfolios and considering long-term investment strategies.

What role do you think investor sentiment plays in shaping market trends? Do you agree with the Finance Minister’s optimistic outlook for a swift recovery?

Share your thoughts in the comments below!


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