Sri Mulyani and Airlangga Deny Resignation Rumors, Reassure Market Stability

JAKARTA, investortrust.id – Finance Minister Sri Mulyani Indrawati and Coordinating Minister for Economic Affairs Airlangga Hartarto have firmly denied speculation that they are stepping down from their positions. The ministers reaffirmed their commitment to maintaining economic stability amid heightened market volatility.

Sri Mulyani, addressing the rumors at the Directorate General of Taxes office in Jakarta on Tuesday, March 18, 2025, stressed that she remains focused on managing the state budget and has no intention of resigning.

“I want to make it clear: I am here, standing firm, and not resigning,” she stated.

Airlangga, speaking separately at the Presidential Palace, echoed similar sentiments. “I am still working, fully focused on my responsibilities, and have no plans to step down,” he affirmed.

The statements come as the Jakarta Composite Index (IHSG) suffered a sharp decline, prompting the Indonesia Stock Exchange (IDX) to halt trading temporarily. Investors reacted to speculation over potential instability in the government’s economic leadership.

Market Turmoil Amid Resignation Speculation

The IHSG plunged by 5.02% during the morning session on Tuesday, triggering a 30-minute trading halt at 11:20 AM. By midday, the index had dropped 6.12% to 6,076, driven largely by heavy sell-offs in stocks linked to Prajogo Pangestu’s companies, which hit the lower price limit.

Economist Josua Pardede from Bank Permata noted that market sentiment was affected by uncertainty over government policy direction.

“The market remains uncertain about future policies, which has led to negative sentiment in domestic financial markets,” he told Investortrust.id.

Additionally, investors were closely watching upcoming policy decisions from Bank Indonesia (BI) and the U.S. Federal Open Market Committee (FOMC), which were expected to maintain interest rates.

“This comes amid heightened global uncertainty, particularly regarding U.S. trade tariff policies,” Josua added.

Government Reassures Investors

Sri Mulyani emphasized that Indonesia’s fiscal policies remain credible and that investor confidence in government bonds remains strong, both domestically and internationally.

“Our responsibility is to manage the state budget prudently and professionally. I remain focused on this duty as entrusted by the President,” she said.

Airlangga, in his statement, confirmed that he had personally spoken with Sri Mulyani and assured the public that both ministers were committed to their roles.

“I spoke with her this afternoon—she is fully engaged in her work. The resignation rumors are false,” he stated.

Despite Indonesia’s stock market decline, regional indices showed resilience, with Japan’s Nikkei up 1.39%, Hong Kong’s Hang Seng rising 1.82%, and China’s Shanghai Composite inching up 0.09%.