Govt assures Indonesia's economic fundamentals remain resilient

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has assured the public that Indonesia’s economic fundamentals remain strong and resilient, despite recent market volatility following Vice President Gibran Rakabuming Raka's decision to resign.

At Thursday's close of trading, the rupiah weakened by 90 points, or 0.50 percent, to Rp18,239 per US dollar, down from the previous close of Rp18,149.

"The economic conditions, naturally, are influenced by two factors: fundamentals and sentiment. Sentiment-driven movements are usually triggered by specific shocks," Airlangga told reporters in Jakarta, Thursday.

Despite the rupiah's depreciation, Airlangga emphasized the government is closely monitoring both domestic political developments and broader global geopolitical shifts, noting that exchange rates are shaped by cumulative trends rather than single-day fluctuations.

"We are aware that various sentiments may be affecting the rupiah. We will simply wait and observe how things unfold. After all, the value of the dollar is not determined by a single day’s movement, but rather by cumulative trends," he said.

In contrast to the currency market, Indonesia’s capital market recorded positive momentum.

The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) rallied 135.87 points, or 2.66 percent, to close at 5,250.90, while the LQ45 index of blue-chip stocks advanced to 543.06.

"Looking at the capital market today, it is performing well. It is in the green and trending upward," Airlangga noted.

Expressing confidence in the domestic economy, the minister hoped that robust fundamental economic activity would help cushion the impact of national political and geopolitical developments.

"Of course we hope that the fundamental maturity of the economy will mature. We hope that geopolitical and national political turmoil can be supported through economic activities," he added.

The economic reassurance follows a major political shift in Jakarta, where Gibran officially submitted his resignation letter to the People's Consultative Assembly (MPR) earlier on Thursday.

Gibran's decision followed separate rulings by the Constitutional Court and the Supreme Court concerning the educational qualifications he submitted when registering as a vice-presidential candidate in the 2024 election.

Related news: Indonesia says rupiah turbulence unlike 1998 financial crisis

Translator: Arnidhya Nur Zhafira, Yashinta Difa
Editor: Bayu Prasetyo
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