Strong Market Fundamentals Boost Tycoons' Confidence: ‘Now Is the Time to Buy’

JAKARTA, Investortrust.id – After two months of continuous declines on the Indonesia Stock Exchange (IDX), the nation’s top tycoons and market stakeholders assert that now is the time to buy. Many fundamentally strong and promising stocks have become significantly undervalued, with the downturn driven more by global factors than domestic economic weaknesses.

PT Alamtri Resources Indonesia Tbk (ADRO) President Director Garibaldi “Boy” Thohir explained that the decline in the Jakarta Composite Index (IHSG) must be assessed from two perspectives—factors beyond Indonesia’s control and those within it. While global influences and foreign investor activities are external forces, Indonesians as market participants still have the ability to shape their stock market.

“I urge everyone to have confidence in our economy and companies. If we don't believe in our own economic fundamentals, who else will? Our issuers are fundamentally strong. Now is the time to buy,” Thohir said during the Solidarity and Synergy of Capital Market Stakeholders forum at the IDX on Monday, March 3, 2025. He added that if regulations ease stock buybacks, his company is ready to act.

Market Players Call for Optimism

The event, opened by Head of Capital Market, Derivatives, and Carbon Exchange Supervision at the Financial Services Authority (OJK) Inarno Jayadi, was attended by major institutional investors, analysts, securities firm executives, and key shareholders of publicly listed companies. Notable attendees included Franky Oesman Widjaja, President Commissioner of PT Sinar Mas Agro Resources and Technology Tbk; Agus Salim Prajogo, President Director of PT Barito Pacific Tbk; Anindya Novyan Bakrie, President Director of PT Bakrie Brothers Tbk and Chairman of the Indonesian Chamber of Commerce and Industry (Kadin); Arsjad Rasjid, President Director of PT Indika Energy Tbk; and Jahja Setiaatmadja, President Director of PT Bank Central Asia Tbk.

IDX President Director Iman Rachman explained that global factors—such as the U.S. Federal Reserve’s high interest rates, policies under former U.S. President Donald Trump, and Morgan Stanley Capital International (MSCI)’s downgrade of Indonesia’s stock rating—have led to significant foreign investor sell-offs.

In response, Aditya Jayaantara, OJK Deputy Commissioner for Investment Market and Securities Institution Supervision, announced a delay in implementing short selling due to the volatile market. Meanwhile, regulators are reviewing a policy to allow issuers to conduct share buybacks without shareholder approval to stabilize the market.

‘Time to Buy’ as Local Investors Step In

Kadin Chairman Anindya Bakrie emphasized that many fundamentally strong stocks on the IDX are now undervalued, urging local investors to seize the opportunity.

“The stock price declines have been excessive. If the government and businesses work together, the economy can grow by up to 8%, and stock prices will rise accordingly. Now is the right time to buy,” Bakrie said.

Franky Oesman Widjaja, a key figure in Sinarmas Group, echoed Bakrie’s sentiment and called on institutional investors to re-enter the market. He pointed out that in the past, government institutions like BPJS Ketenagakerjaan (formerly PT Jamsostek) played an active role in stabilizing the market, whereas institutional participation today remains weak.

“The potential of Indonesia’s capital market is enormous. Investors need better literacy to differentiate quality stocks from weaker ones. I agree with Boy Thohir—now is the time to buy,” Widjaja stated.

Meanwhile, Agoes Prodjosasmito, President Commissioner of PT Amman Mineral Internasional Tbk and Vice President Director of PT Bumi Resources Tbk, urged regulators to immediately approve buyback policies without requiring shareholder meetings.

However, Jahja Setiaatmadja cautioned that OJK must ensure strong governance to prevent misuse of buybacks, which could allow companies to manipulate stock prices.

Economic Growth and Market Stability

Despite the current market turbulence, Agus Salim Pangestu, CEO of Barito Pacific Group, remains optimistic. Supporting President Prabowo Subianto’s administration, he believes Indonesia can achieve 8% GDP growth.

“Our company has consistently posted over 10% profit growth in recent years. This market correction is not new—we’ve weathered many downturns before,” he remarked.

IDX’s Iman Rachman stressed the need for local investors to maintain confidence in the market. He warned that panic selling among domestic investors, triggered by foreign sell-offs, could further destabilize the IHSG.

OJK’s Inarno Jayadi reaffirmed that short selling—a practice allowing investors to sell borrowed shares in anticipation of price drops—will remain suspended until market conditions improve and regulations are fully prepared. He noted that while short selling can enhance liquidity in a bullish market, it can exacerbate declines during a bearish phase.

By the time the discussion concluded, the IHSG closed at 6,519.66, up 3.97%, reflecting renewed investor optimism.

Capital Market Contributions

Between 2013 and 2024, the Indonesian capital market raised a total of Rp 2.43 quadrillion ($156 billion) through three major instruments: initial public offerings (IPO) of Rp 259.22 trillion, rights issues of Rp 798.4 trillion, and bond issuances: Rp 1.37 quadrillion. 

In 2024 alone, total fundraising reached Rp 259.25 trillion, comprising IPO proceeds of Rp 14.35 trillion, rights issues of Rp 34.4 trillion, and bond issuances of Rp 210.5 trillion ($13.5 billion)
In 2023, total capital market fundraising was even higher at Rp 305.71 trillion.

“The capital market plays a crucial role in Indonesia’s economy. Therefore, any policies that support its development will be fully backed,” Inarno Jayadi concluded.