“To the Moon”: Finance Minister Doubts Market Doom, Predicts Indonesian Stocks Will Hit 10,000

JAKARTA, Indonesia (JakartaWeekly.com) – Despite a brutal sell-off that has wiped out nearly 20 percent of the Jakarta Composite Index (IHSG) this year, Finance Minister Purbaya Yudhi Sadewa remains defiantly bullish on Indonesia’s market outlook.

On Monday, as the index slumped by 1.61 percent to close at 7,022.29, Purbaya brushed off investor fears surrounding the escalating U.S.-Iran conflict. When asked by reporters if the benchmark index could still reach the historic 10,000 level by year-end, the Minister responded with characteristic optimism: “To the moon, definitely. 10,000 is still possible.”

A Market in Retreat

The Monday close marks a difficult chapter for Indonesian equities. The IHSG is now down 19.73 percent year-to-date and has shed 15.50 percent over the past month. The carnage was widespread on the floor of the Indonesia Stock Exchange (IDX), where 542 stocks declined compared to just 180 gainers.

Sectoral data reveals the breadth of the downturn, with nearly every industry caught in the slide:

• Property: Down 2.33 percent.
• Energy: Down 2.29 percent.
• Raw Materials: Down 1.66 percent.

Only the healthcare and non-primary consumer goods sectors managed to stay in the green, offering a narrow glimpse of stability in an otherwise bearish environment.

“We Have the Knowledge to Survive”

Despite the red ink, Purbaya urged the public to resist panic selling. He argued that Indonesia’s economic foundation remains robust compared to its G20 peers, citing the country’s ability to maintain a controlled deficit while pursuing faster growth than its neighbors.

“Our economic foundation is good,” Purbaya said. “We have experienced high oil prices many times before. The knowledge is not lost; it’s still in our heads. So, we should be able to survive.”

The Minister framed the current volatility not as a catastrophe, but as a window of opportunity for investors to engage in “serok” (a local term for bottom-fishing)—buying high-quality stocks while they are undervalued.

Regional Divergence

The mood in Jakarta was mirrored across parts of Asia, though results were mixed. While the Nikkei in Tokyo and the Shanghai Composite dipped slightly, regional peers in Hong Kong and Singapore managed to close in positive territory, suggesting that investors are still weighing the risks of the Middle East conflict against local economic data.

With roughly 32 billion shares traded on Monday—amounting to a total value of Rp15.92 trillion—the volume suggests that while some are heading for the exits, others are heavily engaged in the market’s volatility.

For now, the Minister’s “To the Moon” forecast stands as a bold counter-narrative to the prevailing market gloom. Whether Indonesia’s stocks can bridge the gap from 7,000 to 10,000 in a year defined by geopolitical tension remains the ultimate test of Jakarta’s economic resilience.