Jakarta. Amid a steep decline in Indonesia’s stock market on Tuesday -- where share prices plunged over 6 percent before mid-day trading was suspended -- a senior investment official downplayed concerns, describing the volatility as a routine market occurrence.

Deputy Investment Minister Todotua Pasaribu said sharp fluctuations in stock prices are a common phenomenon influenced by both global and domestic factors that shape investor sentiment.

“I see no cause for concern, as many factors contribute to market sentiment, whether they originate domestically or globally,” Todotua told reporters at his office in Jakarta.

He said the government’s priority remains safeguarding economic fundamentals and fostering a conducive investment climate. One of the key strategies, he noted, is the establishment of Indonesia’s sovereign wealth fund, Danantara, aimed at attracting long-term investments.

“We fully recognize that Indonesia possesses abundant [natural] resources and a vast market potential. The key is to maintain consistency in implementing government policies,” he said.

The government is actively refining investment regulations and strengthening legal frameworks to bolster investor confidence, he added.

Additionally, authorities are prioritizing investments in mining and agricultural industrialization to shift away from raw material exports, including unprocessed minerals, ores, and plantation commodities.

Government Takes Market Drop Seriously
While Todotua sought to reassure investors, other officials took a more cautious approach to the market shock.

Lawmakers and Finance Minister Sri Mulyani Indrawati responded with urgency, as several members of the House of Representatives visited the Indonesia Stock Exchange (IDX) floor following the 6.12 percent drop in the morning session -- an event reminiscent of the early days of the Covid-19 crisis five years ago.

In a separate press conference, Sri Mulyani reassured investors that Indonesia’s state budget is being managed prudently and professionally while dismissing speculation about her potential resignation from the cabinet.