Jakarta – The Jakarta Composite Index (JCI) is under pressure again, but this condition is not caused by the weakening of Indonesia’s economic fundamentals. UOB Indonesia Chief Economist, Enrico Tanuwidjaja emphasized that the decline in the JCI was more influenced by external sentiment and global volatility.
“JCI fell because of external sentiment. Global is indeed volatile. For example, Wall Street also fell sharply last night,” Enrico said when met after the Media Literacy Circle event in Jakarta, Tuesday, March 11, 2025.
He highlighted the impact of the tariff war which began to shift the risk of inflation to the threat of stagflation. According to him, this condition encouraged many investors to release superior stocks, especially from sectors that have high growth rates.
“A lot of growth stocks were sold. We are indeed dragged down, especially by foreign investors,” he added.
However, Enrico emphasized that the Indonesian economy is still in a solid condition.
“This is not the fault of macro fundamentals. We are actually still strong. What is more influential is the hard mentality in the market,” he said.
Government Strategy to Maintain Market Confidence
In the midst of global uncertainty, Enrico emphasized the importance of good communication to maintain market confidence.
“We must ensure that the government’s investment strategy continues to run well. Consumption will be encouraged through various fiscal and monetary programs,” he explained.
This step is expected to maintain people’s purchasing power and sustain economic growth, despite high external pressures. (*) Alfi Salima Puteri
