JakartaGlobe-Mar 18
Finance Minister Sri Mulyani Indrawati on Tuesday reassured investors that Indonesia’s state budget is being managed with prudence and efficiency, emphasizing the country’s stable macroeconomic conditions despite a sharp decline in the stock market.
Her remarks came after the Indonesia Stock Exchange (IDX) saw a dramatic 6.12 percent drop in the morning session, triggering an automatic trading suspension — a situation reminiscent of market turmoil during the early days of the Covid-19 crisis five years ago. Despite reporting a Rp 31.2 trillion deficit in the 2025 state budget as of February, Sri Mulyani insisted that Indonesia’s economic fundamentals remain solid. “We need to assure the media and market players that the Finance Ministry continues to manage the state budget with prudence and professionalism,” she said at a press conference held at the Taxation Directorate office in Jakarta. She attributed the market turbulence to a mix of global and domestic factors, noting that it remains unclear whether the downturn reflects broader economic and political dynamics inside the nation. However, she acknowledged that “certain statements” from state-owned enterprises may have influenced market sentiment, without elaborating further. Market data is displayed on the floor of the Indonesia Stock Exchange in Jakarta, Tuesday, March 18, 2025. (B-Universe Photo/Joanito De Saojoao)
In response to speculation about her resignation from the Prabowo Subianto administration, Sri Mulyani firmly denied the rumors. “I am not resigning and will continue my role in safeguarding state finances,” she said. She also reaffirmed the government’s commitment to maintaining fiscal discipline, ensuring that budget allocations align with national development goals while preserving public trust. By the close of trading, the IDX Composite Index (IHSG) had fallen 3.84 percent to 6,223.38 points, with major state-owned banks among the hardest hit by the market decline. Shares of Bank Rakyat Indonesia (BRI) closed 3.92 percent lower at Rp 3,680, while Bank Mandiri’s stock fell 3.21 percent to Rp 4,530. Bank Negara Indonesia (BNI) also saw a decline, with shares dropping 3.23 percent to Rp 4,190. Read more at:
