“I believe the IHSG will continue to rise, maybe for the next ten years as I said earlier. So, in short, IHSG can ‘go to the moon,’” Purbaya told participants at the “Capital Market Players Dialogue with the Finance Minister” held at the Indonesia Stock Exchange (IDX).
“Go to the moon” is a popular metaphor in finance to indicate a dramatic upward move in asset prices.
He assured that the Ministry of Finance still maintains enough fiscal flexibility to support and nurture growth in Indonesia’s capital markets.
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Purbaya emphasized that capital market expansion should parallel broad economic progress.
“I still have quite a lot of funds available to add more support if needed. Naturally, if the economy is strong, the stock market will rise. So, movements in the stock market reflect investor expectations of where we’re headed,” he said.
One of the key policies he pointed to is the recent decision to channel IDR 200 trillion in liquidity from Bank Indonesia into the State‑Owned Banks Association (Himbara), aiming to underpin structural economic improvements.
“The liquidity shift has only been in place for less than a month, so of course the effects won’t be immediate. But market participants can anticipate what the economy will look like going forward,” he said.
“I believe after today’s discussion, there’s more confidence that the changes are structural and will continue to develop,” Purbaya added.
By the close of trading on Thursday (October 9), the IHSG had gained 33.93 points, or 0.42 percent, to reach 8,199.96. Meanwhile, the LQ45 index of blue‑chip stocks edged down 0.35 points, or 0.04 percent, to 784.53.
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Translator: Muhamad, Azis Kurmala
Editor: Rahmad Nasution
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