Sandiaga Uno: Market Uncertainty Pressures IHSG, But Investment Opportunities Remain

Saratoga Investama Co-Founder, Sandiaga Uno, believes that the recent sharp decline in the Jakarta Composite Index (IHSG) was driven by investor concerns over Indonesia’s market conditions. On Tuesday this week, IHSG was temporarily suspended and plunged 6% by the end of the first trading session.

Sandiaga explained that the downturn was caused by a lack of market confidence in the government’s economic programs. Initially, investors expected continuity from President Joko Widodo to President Prabowo Subianto, but instead, policy changes were introduced.

"These changes are actually positive, but they were not communicated clearly to the market," Sandiaga stated at VOFFICE Event Space, Centennial Tower, South Jakarta, on Thursday (March 20, 2025). He emphasized that better communication from the government is necessary to restore investor confidence.

Fiscal Concerns and IHSG Outlook

Beyond policy shifts, investors are also focusing on Indonesia’s fiscal situation, particularly declining tax revenues. However, Sandiaga assured that the country’s economic fundamentals remain strong and will not be significantly affected.

He predicted that IHSG could rebound in the coming days, though market volatility will persist throughout the year.

"Don’t celebrate too soon. The index might turn green in the next few days, but market fluctuations will continue. However, take advantage of these fluctuations to keep investing. I always say, ‘stay invested’ in times like this," he advised.

Blue Chip Stocks as a Smart Investment Choice

Sandiaga remains optimistic that as long as Indonesia maintains economic growth above 5% and corporate earnings remain strong, IHSG could return to the 7,000 level. He recommended that investors consider blue-chip stocks, which are currently trading at attractive valuations.

"Periods of uncertainty present opportunities to buy high-quality stocks with strong fundamentals, particularly in sectors like consumer goods and banking. Right now, blue-chip stocks are available at very affordable prices," he explained.

He also cautioned against short-term trading, instead suggesting that investors hold their positions for long-term growth.

"Hold your investments for the long run, as Indonesia’s economy will continue to expand, and well-managed companies will sustain their growth," Sandiaga concluded.