By Paul Sutaryono, Banking Observer, Assistant Vice President of BNI (2005-2009), Expert Staff of the Center for Business Studies (PSB), UPDM Jakarta and Advisor of the Indonesian Center for Sustainable Tourism (PPBI), Unika Atma Jaya Jakarta.
NEAR the end of February 2025, the capital market was hit by an “earthquake”. At its peak, the Indonesia Stock Exchange (IDX) temporarily froze the trading system (trading halt) on Tuesday, March 18, 2025 for 30 minutes when the Composite Stock Price Index (CSPI) plummeted by 5 percent. This means there is potentially high risk for stakeholders: the government, issuers and investors. What are the capital market challenges in 2025?
On March 21, 2025, the JCI fell 1.93 percent or 123.49 points to 6,258.18. What are the 15 stocks with the largest market capitalization as of 21 March 2025? What is market capitalization? Market capitalization shows the value of a company by multiplying the share price by the number of shares outstanding.
Bank Central Asia (BBCA) remains the king with the highest market cap of IDR 973.87 trillion. This position is followed by PT Barito Renewables Energy (BREN) Rp 799.37 trillion, Bayan Resources (BYAN) Rp 666.67 trillion, Chandra Asri Petrochemical (TPIA) Rp 627.21 trillion, Bank Rakyat Indonesia (BBRI) Rp 560.77 trillion, Amman Mineral International (AMMN) Rp 426.04 trillion, Bank Mandiri (BMRI) Rp 411.60 trillion.
Then followed DC Indonesia (DCII) Rp 362.39 trillion, Dian Swastatika Sentosa (DSSA) Rp 326.71 trillion, Telkom Indonesia (TLKM) Rp 228.83 trillion, Astra International (ASII) Rp 195.94 trillion, Minna Padi Aset Manajemen (PANI) Rp 151.11 trillion, Bank Negara Indonesia (BBNI) Rp 140.61 trillion, Indoritel (DNET) Rp 131.56 trillion and Indofood CBP Sukses Makmur (ICBP) Rp 123.32 trillion (Kontan.co.id, March 21, 2025). It should be noted, however, that even though blue chip stocks are plummeting, for savvy investors, this is precisely the time to buy stocks!
Various Strategic Steps
So, what are the strategic steps in suppressing the capital market “earthquake”? What are the challenges of the capital market in 2025? First, what are the causes of the JCI crash? According to IDX Managing Director Iman Rachman, there are many causes of changes in the index and it is not just one party. The index is always affected by three things, how (conditions) are global, domestic and how the corporation itself (Kompas, March 1, 2025).
The decline in the JCI and the fall in tax revenue in the first quarter of 2025 are not two independent phenomena, but rather a simultaneous representation of the weakening foundation of public and market participants’ confidence in the direction of the national economy and the consistency of government fiscal policy.
Both are reflections of the same unrest: macroeconomic uncertainty, lack of fiscal transparency and the absence of sustainable policy guarantees that can generate optimism in the real sector or individuals (Astri Warih Anjarwi, Kompas, April 2, 2025).
The establishment of the Daya Anagata Nusantara (Danantara) Investment Management Agency (BPI) on February 24, 2025 could be one of the causes of the capital market turmoil from domestic sources. Danantara is a state-owned super holding similar to sovereign wealth funds (SWF) like Temasek, Singapore.
What is the legal umbrella for the establishment of Danantara? Law (UU) No. 1 of 2025 on the Third Amendment to Law No. 19 of 2003 on State-Owned Enterprises (BUMN). This is considered not in accordance with the principles of good corporate governance (GCG).
Just look at Article 3Y which states that the Minister (who organizes government affairs in the field of BUMN), organs and employees of the Agency (Danantara Investment Management Agency) cannot be held legally responsible for losses if they can prove that a) the loss was not due to their fault or negligence.
Then, b) has carried out management in good faith and prudence in accordance with the aims and objectives of investment and governance, c) has no direct or indirect conflict of interest over investment management actions and e) does not obtain unlawful personal gain. Organs are the Board of Commissioners of Persero, the Supervisory Board of Public Company (Perum) and the Board of Directors of BUMN.
Second, it seems that the performance of the state budget as of February 2025, which experienced a deficit of IDR 31.2 trillion or 0.13 percent of gross domestic product (GDP), was also one of the causes of the capital market “earthquake”.
State revenue was realized at IDR316.9 trillion or 10.5 percent of the 2025 State Budget of IDR3,005.1 trillion. Tax revenue of IDR240.4 trillion or 9.7 percent of the target with details of IDR187.8 trillion coming from tax revenue and IDR52.6 trillion from customs and excise. Non-tax state revenue (PNBP) absorbed IDR76.4 trillion or 14.9 percent of the target.
On the other hand, the realization of state spending was IDR 348.1 trillion or 9.6 percent of the target of IDR 3,621.3 trillion. Central government spending (BPP) was IDR 211.5 trillion or 7.8 percent of the target. Here are the details: ministry/agency (K/L) spending of IDR 83.6 trillion and non-K/L spending of IDR 127.9 trillion. The expenditure on transfers to regions (TKD) is IDR 136.6 trillion or 14.9 percent of the target (Antara, March 13, 2025).
Third, it is fortunate that the Financial Services Authority (OJK) has issued a share buyback policy without the need to go through a general meeting of shareholders (GMS). This is expected to increase market confidence as well as reduce the pressure that has occurred on the domestic stock market.
Indonesia’s Capital Market Challenge 2025
By Paul Sutaryono, Banking Observer, Assistant Vice President of BNI (2005-2009), Expert Staff of the Center for Business Studies (PSB), UPDM Jakarta and Advisor of the Indonesian Center for Sustainable Tourism (PPBI), Unika Atma Jaya Jakarta.
NEAR the end of February 2025, the capital market was hit by an “earthquake”. At its peak, the Indonesia Stock Exchange (IDX) temporarily froze the trading system (trading halt) on Tuesday, March 18, 2025 for 30 minutes when the Composite Stock Price Index (CSPI) plummeted by 5 percent. This means there is potentially high risk for stakeholders: the government, issuers and investors. What are the capital market challenges in 2025?
On March 21, 2025, the JCI fell 1.93 percent or 123.49 points to 6,258.18. What are the 15 stocks with the largest market capitalization as of 21 March 2025? What is market capitalization? Market capitalization shows the value of a company by multiplying the share price by the number of shares outstanding.
Bank Central Asia (BBCA) remains the king with the highest market cap of IDR 973.87 trillion. This position is followed by PT Barito Renewables Energy (BREN) Rp 799.37 trillion, Bayan Resources (BYAN) Rp 666.67 trillion, Chandra Asri Petrochemical (TPIA) Rp 627.21 trillion, Bank Rakyat Indonesia (BBRI) Rp 560.77 trillion, Amman Mineral International (AMMN) Rp 426.04 trillion, Bank Mandiri (BMRI) Rp 411.60 trillion.
Then followed DC Indonesia (DCII) Rp 362.39 trillion, Dian Swastatika Sentosa (DSSA) Rp 326.71 trillion, Telkom Indonesia (TLKM) Rp 228.83 trillion, Astra International (ASII) Rp 195.94 trillion, Minna Padi Aset Manajemen (PANI) Rp 151.11 trillion, Bank Negara Indonesia (BBNI) Rp 140.61 trillion, Indoritel (DNET) Rp 131.56 trillion and Indofood CBP Sukses Makmur (ICBP) Rp 123.32 trillion (Kontan.co.id, March 21, 2025). It should be noted, however, that even though blue chip stocks are plummeting, for savvy investors, this is precisely the time to buy stocks!
Various Strategic Steps
So, what are the strategic steps in suppressing the capital market “earthquake”? What are the challenges of the capital market in 2025? First, what are the causes of the JCI crash? According to IDX Managing Director Iman Rachman, there are many causes of changes in the index and it is not just one party. The index is always affected by three things, how (conditions) are global, domestic and how the corporation itself (Kompas, March 1, 2025).
The decline in the JCI and the fall in tax revenue in the first quarter of 2025 are not two independent phenomena, but rather a simultaneous representation of the weakening foundation of public and market participants’ confidence in the direction of the national economy and the consistency of government fiscal policy.
Both are reflections of the same unrest: macroeconomic uncertainty, lack of fiscal transparency and the absence of sustainable policy guarantees that can generate optimism in the real sector or individuals (Astri Warih Anjarwi, Kompas, April 2, 2025).
The establishment of the Daya Anagata Nusantara (Danantara) Investment Management Agency (BPI) on February 24, 2025 could be one of the causes of the capital market turmoil from domestic sources. Danantara is a state-owned super holding similar to sovereign wealth funds (SWF) like Temasek, Singapore.
What is the legal umbrella for the establishment of Danantara? Law (UU) No. 1 of 2025 on the Third Amendment to Law No. 19 of 2003 on State-Owned Enterprises (BUMN). This is considered not in accordance with the principles of good corporate governance (GCG).
Just look at Article 3Y which states that the Minister (who organizes government affairs in the field of BUMN), organs and employees of the Agency (Danantara Investment Management Agency) cannot be held legally responsible for losses if they can prove that a) the loss was not due to their fault or negligence.
Then, b) has carried out management in good faith and prudence in accordance with the aims and objectives of investment and governance, c) has no direct or indirect conflict of interest over investment management actions and e) does not obtain unlawful personal gain. Organs are the Board of Commissioners of Persero, the Supervisory Board of Public Company (Perum) and the Board of Directors of BUMN.
Second, it seems that the performance of the state budget as of February 2025, which experienced a deficit of IDR 31.2 trillion or 0.13 percent of gross domestic product (GDP), was also one of the causes of the capital market “earthquake”.
State revenue was realized at IDR316.9 trillion or 10.5 percent of the 2025 State Budget of IDR3,005.1 trillion. Tax revenue of IDR240.4 trillion or 9.7 percent of the target with details of IDR187.8 trillion coming from tax revenue and IDR52.6 trillion from customs and excise. Non-tax state revenue (PNBP) absorbed IDR76.4 trillion or 14.9 percent of the target.
On the other hand, the realization of state spending was IDR 348.1 trillion or 9.6 percent of the target of IDR 3,621.3 trillion. Central government spending (BPP) was IDR 211.5 trillion or 7.8 percent of the target. Here are the details: ministry/agency (K/L) spending of IDR 83.6 trillion and non-K/L spending of IDR 127.9 trillion. The expenditure on transfers to regions (TKD) is IDR 136.6 trillion or 14.9 percent of the target (Antara, March 13, 2025).
Third, it is fortunate that the Financial Services Authority (OJK) has issued a share buyback policy without the need to go through a general meeting of shareholders (GMS). This is expected to increase market confidence as well as reduce the pressure that has occurred on the domestic stock market.
Editor : Galih Pratama
