IHSG Drops After Prabowo’s Export Agency Plan, Market Awaits Clarity

KORANPAGARALAMPOS.COM - Indonesia’s stock market experienced renewed pressure after President Prabowo Subianto announced the formation of the Natural Resources Export Agency.

The move triggered a decline in the IHSG as investors reacted cautiously to the government’s latest economic policy initiative.

According to Finance Minister Purbaya Yudhi Sadewa, the sharp drop in the Indonesian stock index was largely driven by market uncertainty rather than concerns over the long-term economic outlook.

Investors, he explained, are still assessing how the newly proposed export institution could impact corporate earnings, export flows, and overall business operations.

Market reactions to new policies are often influenced by uncertainty. When investors do not yet fully understand the implications of a regulation, risk sentiment tends to weaken temporarily.

This situation appears to be unfolding in Indonesia’s capital market following the announcement of the export agency.

Purbaya emphasized that the negative sentiment is likely temporary. He believes the market will gradually recover once investors gain a clearer understanding of the objectives and benefits of the policy.

The government expects the agency to improve transparency and strengthen export governance, particularly in the natural resources sector.

One of the key issues highlighted by the finance minister is the practice of under-invoicing in export activities.

Under-invoicing occurs when export values are reported below their actual prices, allowing companies or individuals to reduce taxes or move profits abroad.

The government sees the formation of the new agency as a strategic step to close loopholes in export reporting and improve accountability.

If implemented effectively, the policy could provide more accurate financial reporting from companies involved in commodity exports.

This transparency may eventually strengthen investor confidence, especially among foreign institutional investors who prioritize clear and reliable corporate data.

The government also clarified that the oil and gas sector will not be included in the export agency scheme.