Minister of Finance Purbaya Yudhi Sadewa has expressed strong optimism that the Jakarta Composite Index (IHSG) will regain momentum next week, supported by improving national economic fundamentals. This outlook follows a period where the index fluctuated around the 5,900 level.
Speaking at the Presidential Palace in Jakarta on Friday, May 22, 2026, as reported by Antara, Purbaya highlighted that technical indicators suggest a significant acceleration in the index’s performance. He urged market participants to remain calm and confident, emphasizing the government’s ongoing commitment to strengthening the national economy.
According to Purbaya, a rebound in the IHSG is inevitable as Indonesia’s underlying economic conditions remain robust. “It is only a matter of time before the IHSG rebounds. I believe it will not be long,” he stated. He further explained that long-term stock movements are inherently driven by corporate fundamentals and the broader economic climate. When the economy performs well, corporate profitability typically follows, which should naturally lift stock prices.
“Everything starts with economic fundamentals. When the economy is strong, corporate profitability increases. It is unlikely for a profitable company’s stock to remain suppressed. If a stock is undervalued despite high profitability, it represents a strong buying opportunity,” Purbaya added.
Market sentiment has already shown signs of recovery, with the IHSG closing higher on Friday afternoon, buoyed by a rebound in the energy and basic materials sectors. The index ended the trading session up 67.11 points, or 1.10 percent, to reach the 6,162.05 level. Similarly, the LQ45 index, which tracks the 45 most liquid stocks, rose by 4.04 points or 0.66 percent to close at 620.44.
This positive finish marked a notable recovery for the market, which had earlier dipped to an intraday low of 5,966.86. By the end of the day, nearly every sector had moved into the green zone, reflecting broader investor confidence in the market’s resilience.
Editor’s Choice: How Investors Should Respond to MSCI Assessments
Summary
Minister of Finance Purbaya Yudhi Sadewa expressed strong optimism that the Jakarta Composite Index (IHSG) will accelerate next week, citing improving national economic fundamentals. Speaking on Friday, May 22, 2026, he emphasized that a rebound is inevitable given Indonesia’s robust economic conditions. Purbaya believes that strong economic fundamentals lead to increased corporate profitability, which naturally drives stock prices upward.
This outlook is supported by recent market performance, as the IHSG closed higher on Friday afternoon, up 1.10 percent to 6,162.05. The rebound was primarily driven by the energy and basic materials sectors, with the LQ45 index also showing gains. This positive finish marked a significant recovery from an intraday low, reflecting broader investor confidence.