Indonesia's economy resilient despite market swings, minister says
The rupiah fell 0.50 per cent against the US dollar, while the Jakarta Composite Index rose 2.66 per cent following the vice president's resignation decision.
Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto said the economy's underlying strength remained intact amid market volatility following Vice President Gibran Rakabuming Raka's decision to resign.
Speaking to reporters in Jakarta, Airlangga said both economic fundamentals and sentiment influenced market conditions, with particular shocks capable of driving sentiment. He said the government was watching domestic politics and global geopolitical developments, and stressed that exchange-rate movements should be assessed over time rather than over a single trading day.
The rupiah ended trading at Rp18,239 per US dollar, a decline of 90 points, or 0.50 per cent, from its previous close of Rp18,149. Equities moved in the opposite direction: the Jakarta Composite Index gained 135.87 points, or 2.66 per cent, to finish at 5,250.90. The LQ45 blue-chip index rose to 543.06.
Airlangga pointed to the stock market's gains and expressed hope that economic activity would help absorb the effects of domestic political upheaval and geopolitical developments.
Gibran formally delivered his resignation letter to the People's Consultative Assembly (MPR). His decision followed separate Constitutional Court and Supreme Court rulings concerning the educational qualifications he had submitted for his vice-presidential candidacy in the 2024 election.
