The Jakarta Stock Index dropped 1.28% on Monday, September 8, 2025, after President Prabowo Subianto announced a significant cabinet reshuffle. The index closed at 7,766.84, down 100.49 points, as investors reacted to changes in several strategic ministries. A total of 451 stocks weakened, 232 gained, and 121 remained unchanged.
IDX Composite Falls After Cabinet Reshuffle
The IDX Composite falls sharply following the announcement, closing at its lowest point of the day at 7,766.84. Market data showed the index moved between 7,766.84 and 7,934.99 during trading hours. Heavy losses came from major banking stocks:
- PT Bank Central Asia Tbk. (BBCA) fell 3.75% to IDR 7,700.
- PT Bank Mandiri (Persero) Tbk. (BMRI) dropped 4.06% to IDR 4,490.
- PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) slipped 2.50% to IDR 3,900.
- PT Pantai Indah Kapuk Dua Tbk. (PANI) plunged 5.76% to IDR 14,325.
These losses highlighted investor unease over the reshuffle, particularly as it included the Finance Ministry, a post seen as vital to economic stability.
Indonesia Stock Market Reacts to Policy Uncertainty
The Indonesia stock market reacted quickly to heightened policy uncertainty. Before the announcement, the index had strengthened by 0.58% in the first trading session, closing at 7,912.95. Optimism was supported by a stronger rupiah and lower 10-year government bond yields. However, investor confidence shifted once the reshuffle became official.
The market downturn reflected concerns about the future direction of fiscal and economic policy. Analysts pointed to the replacement of Finance Minister Sri Mulyani by Purbaya Yudhi Sadewa as a key trigger. Purbaya previously led the Deposit Insurance Corporation (LPS), but investors are now waiting for signals on his economic agenda.
Analysts See Cabinet Reshuffle as Game Changer
Market experts described the reshuffle as a potential turning point. Arifin, an analyst at Reliance Sekuritas, said, “This will also be a game changer going forward, as the reshuffle could have implications on policy direction until the end of the year.” He also noted that the timing aligned with the so-called September Effect, which often brings volatility.
The Phintraco Sekuritas Research Team had earlier predicted strength in the index, citing technical indicators such as a narrowing negative slope on the MACD and a Stochastic RSI Golden Cross. However, the sudden political development reversed those expectations.
Mirae Asset Sekuritas Indonesia also highlighted strong trading activity, recording transactions of IDR 8.8 trillion during the first session. This momentum, though, failed to hold once the announcement hit the market.
Sector Winners Despite Market Downturn
Despite the overall decline, several commodity and energy-related stocks posted strong gains, showing investors’ preference for defensive sectors amid political shifts. Leading advancers included:
- PT Aneka Tambang Tbk. (ANTM), up 6.49% to IDR 3,610.
- PT Merdeka Copper Gold Tbk. (MDKA), up 0.76% to IDR 2,640.
- PT United Tractors Tbk. (UNTR), up 4.34% to IDR 26,450.
- PT Indika Energy Tbk. (INDY), up 5.73% to IDR 1,660.
These movements suggested that while confidence in financial and property sectors weakened, investors sought resilience in mining and energy plays. Such positioning reflects a common trend during times of political uncertainty.
Market Outlook After Cabinet Reshuffle
The cabinet reshuffle reshaped investor sentiment, causing a notable drop in the Jakarta stock index. With changes at the Finance Ministry and other key portfolios, markets will watch closely for signs of policy direction under new leadership. Short-term volatility appears likely, but long-term stability will depend on how quickly the government signals its economic strategy. Investors remain focused on whether the new cabinet will provide clarity and confidence in the months ahead.
Source: nasional.kompas.com, market.bisnis.com
Image: Getty Images
