29 September 2025 (closed)
Jakarta Composite Index (8,125.20) +85.16 +1.06%
Waspadalah terhadap penipu yang aktif di WA mengatasnamakan Indonesia Investments
The Morning After - How Do the Stock & Currency Markets Respond to Indonesia's Cabinet Reshuffle?
After the drastic cabinet reshuffle on Monday 8 September 2025 - when Indonesian President Prabowo Subianto replaced five ministers and created one new ministry - it is interesting to take a look at how markets are responding to these developments after a night's rest.
In fact, markets already had an opportunity to respond on Monday afternoon, when the Jakarta Composite Index suddenly plunged to close down 1.28 percent, while the rupiah did not seem to be affected. However, on Monday there was limited time between when the official news came out and the end of the trading day. That is different on Tuesday (9 September 2025) as market participants have had time to digest the news.
Interestingly enough, the Jakarta Composite rose modestly after the opening of trade on Tuesday, suggesting that calmness had returned. However, about 30 minutes after opening, the index went into red territory again, losing around 1.20 percent of its value. But 30 minutes later the market saw a mild recovery. While the index was still about 0.90 percent in the red, losses were manageable.
Matters were worse for the rupiah on Tuesday, as the currency weakened quite significantly against various other currencies. For example, based on data from CNBC Indonesia, the rupiah depreciated 0.8 percent, both against the US dollar (to the level of IDR 16,430 per US dollar) and the Euro (to IDR 19,331 per Euro).
Meanwhile, if we look at international media coverage, then we generally see a negative attitude toward the removal of Finance Minister Sri Mulyani Indrawati as she was regarded a credible person to look after Indonesia's fiscal matters.
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