January 29, 2026 | 08:38 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa has advised investors to switch to large-cap stocks with stable financial performance, or blue-chip stocks, as the Jakarta Composite Index (IHSG) plunged 8 percent, leading to a trading halt.
He urged calm for investors. "There are still large-cap, blue-chip stocks," he said on Thursday at the Coordinating Ministry for Economic Affairs. "If you're afraid, just switch to those."
Purbaya also emphasized the need for the stock exchange to be free from unusual trading volume, or the 'pump and dump' stocks. Additionally, the finance minister stated that the IHSG decline was a temporary reaction to the risk of downgraded equity to a frontier market status.
The risk of decline emerged after the temporary freeze of Indonesian stock rebalancing by Stanley Capital International (MSCI). This action was taken as MSCI reviews the rules regarding free floating shares on IHSG.
The Finance Minister assured that Indonesia's economic and fiscal foundations are still strong. Thus, he predicted that the shock effect that triggered the IHSG plunge would only last for a short period, around two to three days.
Co-founder of PasarDana and Capital Market Practitioner Hans Kwee agreed with Purbaya's advice that it's the right time to switch to blue-chip stocks. "We can accumulate big cap and blue-chip stocks that have corrected due to market panic," he told Tempo on Thursday, January 29, 2026.
He also suggested improvements to the Indonesian capital market regulations, particularly through information transparency. "Especially for company owners holding less than 5 percent of shares. This reduces the potential for market manipulation," he said.
Trading halt occurred for two consecutive days. On January 28, IHSG halted trading after plummeting 8 percent, and again today, at 09:26 a.m. Jakarta Automated Trading System (JATS) time.
Anastasya Lavenia contributed to the writing of this article
Read: IHSG Edges Lower Following Morning Trading Halt
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