What Went Wrong in Indonesia's Stock Market? Finance Chief Weighs in on Selloff, MSCI Downgrade

Watch on YouTube ↗  |  February 03, 2026 at 17:16  |  6:12  |  Bloomberg Markets
Speakers
Purbaya Yudhi Sadewa — Finance Minister of Indonesia
Haslinda Amin — Anchor, Bloomberg Television

Summary

Indonesian Finance Minister Purbaya Yudhi Sadewa discussed the recent MSCI downgrade threat to Indonesia's stock market with Bloomberg's Haslinda Amin. He said the warning is a positive catalyst to clean up price manipulation and that Indonesia will satisfy MSCI before May. He defended fiscal policy and mining permit revocations, saying the deficit will stay below 3% and anti-illegal mining measures will improve the investment climate. He expects a better business climate, faster growth, and eventually higher share prices.

  • Indonesian Finance Minister Purbaya Yudhi Sadewa defended Indonesia's economic and market track record.
  • He said MSCI's warning is a chance to clean up stock-market manipulation and he expects Indonesia to satisfy MSCI before May.
  • He is not concerned about a downgrade and expects regulatory changes to support capital markets.
  • He said government spending, liquidity, and a debottlenecking taskforce are supporting the economy and business climate.
  • He rejected Citi's report that the budget deficit could breach the 3% legal limit.
  • He defended mining permit revocations as a move against illegal mining and toward better investment climate.
  • He expects better business climate and faster growth to eventually lift share prices.
Ideas
Purbaya Yudhi Sadewa Finance Minister of Indonesia 0:37
MSCI pressure to lift Indonesian stocks
MSCI's warning is beneficial because it forces Indonesia to clean up stock-market manipulation and improve transparency. The government and market regulators are taking steps to satisfy MSCI before May, and with better liquidity, timely spending, and business-climate reforms, share prices should eventually rise. He is not concerned about a downgrade because conditions are improving.
EIDO HIGH
Purbaya Yudhi Sadewa Finance Minister of Indonesia 3:24
Mining cleanup supports Indonesian mining sector
The revocation of mining permits and action against illegal mining are intended to remove bad practices and improve due process, making the investment climate and mining practices better. He stressed the government is not against mining, only illegal mining, which supports compliant Indonesian miners.
Indonesian mining sector MED
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This Bloomberg Markets video, published February 03, 2026, features Purbaya Yudhi Sadewa discussing EIDO, Indonesian mining sector. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Purbaya Yudhi Sadewa  · Tickers: EIDO, Indonesian mining sector