Durian. Unrealistic government policies without the clear technocracy are among possible reasons behind the declining of composite index (IHSG) of the Jakarta Stock Exchange (IDX) to reach 5 percent, causing the halt of the trading in the middle of first session of the market on 18 March 2025, according to analysts.
According to Wijayanto Samirin, economist from Paramadina University to journalists on Tuesday, there are several factors that may cause the declining of the IHSG at the IDX on Tuesday, including the poor performance of Indonesia’s February’s state budget report, heavy 2025’s fiscal outlook.
“The impact of unrealistic government policies and without clear technocracy, mega-graft issues that ruin the trust,” Wijayanto said, adding that market worry that the protest against the renewal of dual functions of the military (TNI) could be mountain.
Meanwhile, Ibrahim Assuaibi, a money market analys said besides the global influence to Indonesia’s market, uncertainty of domestic economy has triggered the sharp declining of the IDX on Tuesday.
“Uncertainty of domestic economy, well we know that the domestic condition keep experiencing turbulence especially on the budget deficit that was just announced by Finance Minister Sri Mulyani,” Ibrahim said.
Finance Minister Sri Mulyani on 13 March 2025 has announced that January and February’s state budget was deficit 31.2 trillion rupiah or US$1.9 billion due to lack of revenue target, including from tax.
In the first trading session at the IDX on Tuesday ended with the IHSG declining 6.09 percent. (***)
