TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsGovt’s economic pivot sends assurances, but firmer measures needed
On Tuesday, the government and Bank Indonesia (BI) introduced several economic policy changes, including a benchmark interest rate hike, a commitment by state-owned banks to conduct stock buybacks and an increase in the Pertamax price.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
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.
Before the day turned, state-owned energy giant Pertamina also increased the price of the most popular unsubsidized gasoline brand Pertamax, whose price had been held at bay even when the prices of other brands had gone up significantly not long after the Middle East conflict flared up.
The rupiah and the Indonesia Stock Exchange (IDX) Composite index both improved on Wednesday.
Read also: Pertamina hikes Pertamax prices by 32% amid high oil prices
Economist Intelligence Unit (EIU) Asia analyst Tay Qi Hang said the measures the authorities had introduced the previous day “were an important factor” behind Wednesday’s rebound.
