Chairman of Commission XI of the House of Representatives, Mukhamad Misbakhun, emphasized that global economic uncertainty has become an unavoidable reality in the current climate. Speaking at the Parliament Complex in Senayan on Wednesday, May 20, 2026, he noted that ongoing geopolitical tensions serve as constant indicators of this instability.
Misbakhun specifically highlighted the geopolitical strain caused by the stance of United States President Donald Trump regarding a potential ceasefire in the conflict with Iran. With both nations currently hesitant to pursue a truce, the resulting uncertainty continues to loom large over the global economic landscape.
In response to these challenges, Misbakhun asserted that the government and the House of Representatives must play a proactive role in managing such volatility. He stressed that economic policy decisions must be formulated with extreme caution to mitigate potential shocks. He further underlined the necessity of closely monitoring emerging opportunities while preparing rigorous risk mitigation strategies for the short and medium term, acknowledging that long-term forecasting remains particularly difficult under such fluctuating conditions.
This perspective follows recent market turbulence, notably the sharp decline of the Induk Harga Saham Gabungan (IHSG) observed during trading on Monday, May 18, 2026. On that morning, the index experienced a correction of up to 4 percent.
Acting President Director of the Indonesia Stock Exchange, Jeffrey Hendrik, acknowledged the situation, stating that the high level of market uncertainty continues to influence investor sentiment. However, he noted that the decline in the IHSG at the start of the week was in line with broader trends across Asian markets, which also faced corrections following the long holiday weekend.
According to Jeffrey, the primary drivers of this market instability include volatile commodity prices, currency fluctuations across various countries, and the unresolved conflicts in the Middle East. These interconnected factors remain the core contributors to the current fluctuations in the performance of the IHSG.
Anastasya Lavenia Yudi contributed to this report.
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Summary
Chairman of Commission XI of the House of Representatives, Mukhamad Misbakhun, states that global economic uncertainty is currently unavoidable due to persistent geopolitical tensions, particularly those involving the United States and Iran. This instability has directly impacted financial markets, evidenced by a significant 4 percent correction in the Indonesia Stock Exchange (IHSG) index on May 18, 2026.
To navigate this volatility, Misbakhun urges the government and parliament to adopt proactive and cautious economic policies while developing rigorous risk mitigation strategies. Meanwhile, stock exchange officials attribute the market fluctuations to a combination of volatile commodity prices, currency instability, and ongoing conflicts in the Middle East.