Jakarta. Finance Minister Purbaya Yudhi Sadewa and Chief of Economic Affairs Minister Airlangga Hartarto on Friday said the resignation of Iman Rachman as president director of the Indonesia Stock Exchange (IDX) could help restore investor confidence and reinforce the credibility of Indonesia’s capital market.

Purbaya said the move sends a constructive signal to investors that authorities are responding decisively to recent market volatility. “I think this is a positive signal. It shows that investors in both the capital market and the real sector see that we are managing issues quickly and seriously,” he said.

He described Iman’s decision as a form of accountability amid recent turbulence in the stock market, which he linked to IDX’s response to feedback from MSCI Inc., a factor that contributed to a sharp correction in the Jakarta Composite Index (JCI).

According to Purbaya, without firm corrective action, Indonesia’s capital market risked being perceived as unstable, potentially putting pressure on other parts of the economy.

He also sought to ease concerns over fiscal risks, saying the market correction has had no impact on the state budget. Purbaya said investors who understand capital market dynamics are likely to view Iman’s resignation positively. “Those who were previously hesitant should now be more confident that the direction ahead is better. As a result, they will invest in both the capital market and the real sector, including foreign direct investment,” he said.

Asked about a successor, Purbaya said the government would respect IDX’s internal mechanisms.

“There is a procedure within the exchange itself. We will let the exchange handle it,” he said.

Iman earlier announced his resignation at the IDX Media Center in Jakarta on Friday, citing responsibility for recent capital market conditions. IDX will appoint an acting president director to ensure daily operations continue.

Airlangga echoed Purbaya’s remarks, reaffirming the government’s commitment to maintaining market stability and credibility amid ongoing global uncertainty.

“We need to emphasize that Indonesia’s economic fundamentals remain strong, and coordination between fiscal and monetary policy is running well,” Airlangga said after a l meeting at Wisma Danantara, which was attended by several ministers and the CEO of Danantara Indonesia. He added that market confidence remained intact, pointing to the JCI’s recovery after coming under pressure and returning to positive territory.

As part of longer-term reforms, Airlangga said the government is accelerating the demutualization of IDX, with the process expected to begin this year.

He said demutualization is a key element of Indonesia’s capital market structural transformation, aimed at reducing conflicts of interest between exchange management and members while preventing unhealthy market practices.

“With changes in ownership structure and governance, the exchange is expected to operate more independently, professionally, and transparently. Demutualization can start being processed this year. This is part of structural transformation,” Airlangga said.

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