'Oversold' markets expect concrete improvement in policies, not rhetoric.
Luhut Binsar Pandjaitan, center, chairman of the National Economic Council (DEN), speaks to reporters alongside DEN Executive Secretary Septian Hario Seto, right, and DEN member Chatib Basri, left, after a meeting with Indonesian President Prabowo Subianto at the Merdeka Palace complex in Jakarta, Indonesia, on June 9, 2026. The council reported to the president on its review of the Free Nutritious Meals (MBG) program and developments related to GovTech Indonesia, an initiative aimed at integrating government digital services through a national portal. (Antara/Bayu Pratama S)
A series of surprise economic policy changes by the government and Bank Indonesia (BI) has offered markets a dose of reassurance, succeeding where previous rhetoric fell short. However, experts caution that more concrete measures are required to sustain the positive momentum.On Tuesday, the central bank hiked the interest rate by 25 basis points, which was a decision made outside the normal, scheduled board of governors meeting that this month is set to take place on June 18.
Another policy was also introduced during the day, namely a handshake deal among Deputy House of Representatives Speaker Sufmi Dasco Ahmad, State Secretary Prasetyo Hadi, executives from state-owned banks and state asset fund Danantara, who agreed that stock buybacks were necessary as a response to the recent stock market rout.
