RHB Sekuritas Indonesia analyst Andrey Wijaya notes: “Despite this clarification, market volatility is expected to persist in the medium term due to ongoing policy uncertainty and ineffective government communication, which have negatively impacted investor sentiment.”
Following rumours of the resignations of Indonesia’s minister of finance, Sri Mulyani and coordinating minister of economics, Airlangga Hartarto, the Jakarta Stock Exchange Composite Index (JCI) plunged over 7%, prompting a temporary 30-minute trading halt before closing 6.1% lower at 6,076 points, its lowest level in three years.
Indonesia’s Presidential Palace has since denied these claims, denouncing the reports of Sri Mulyani’s resignation as false claims.
