Prabowo Prioritizes Food Security Over Stock Market Fluctuations

JAKARTA, investortrust.id – President Prabowo Subianto has reaffirmed that ensuring food supply and price stability remains his administration's top priority, particularly ahead of the Islamic holidays. In a cabinet session on Friday, he dismissed concerns over recent turmoil in the stock market, asserting that national stability hinges more on food security than on stock prices.

Speaking at the Cabinet Plenary Session at the Presidential Palace in Jakarta on Friday, March 21, 2025, Prabowo said stock prices may fluctuate, but stable food supply is vital for national safety. His remarks came as the country prepares for the Ramadan and Eid al-Fitr period, during which food consumption typically spikes.

“Food is the most important. Stock prices can go up and down, but if food is safe, the country is safe,” Prabowo told his ministers.

Indonesia, the world’s fourth most populous country, has long grappled with food supply concerns. Prabowo emphasized that the nation can no longer take food matters lightly, noting that this year’s domestic agricultural production has performed well, reducing dependency on imports.

“We’ve worried for years about our food security, often fearing that we would need to import. Thankfully, production is strong this year and prices remain under control,” he said.

Prabowo expressed gratitude to officials in the agriculture and food sectors for stabilizing food supply and prices. He acknowledged that only bird’s eye chilies saw a temporary price spike, which has since subsided.

In a moment of levity, Prabowo addressed the stock market dip that rattled several cabinet members, naming Minister of Public Housing Maruarar Sirait, Minister of Marine Affairs and Fisheries Sakti Wahyu Trenggono, and Minister of Investment and Downstreaming Rosan Roeslani as those likely affected.

“Only a few of you are stressed about falling stock prices—Maruarar, Trenggono… Oh, you’re sitting next to each other. Budiman’s calm because he doesn’t own any stocks. Amran too. Rosan? Well, Rosan’s already bald, so he’s fine,” Prabowo joked.

Foreign Outflows Hammer Indonesian Stocks

On the same day, foreign investors booked a massive net sell worth Rp 2.35 trillion, or approximately $149 million, dragging the Jakarta Composite Index (IHSG) down by 123.49 points, or 1.94%, to close at 6,258.18.

Heavy selling targeted blue-chip banking stocks including PT Bank Central Asia Tbk (BBCA), which saw net sell of Rp 1.32 trillion; PT Bank Negara Indonesia Tbk (BBNI), Rp 514.20 billion; and PT Bank Mandiri Tbk (BMRI), Rp 512.21 billion. Other affected names included PT Mitra Adiperkasa Tbk (MAPI) and PT Bumi Resources Minerals Tbk (BRMS).

Meanwhile, net buyers picked up shares of PT Sumber Alfaria Trijaya Tbk (AMRT), PT Perusahaan Gas Negara Tbk (PGAS), PT Astra International Tbk (ASII), PT GoTo Gojek Tokopedia Tbk (GOTO), and PT Chandra Asri Pacific Tbk (TPIA).

The IHSG plunge was largely driven by the sharp correction in banking shares such as BBCA, BMRI, BBNI, BRIS, and BBRI. Gains in companies controlled by energy and petrochemical tycoon Prajogo Pangestu—namely Barito Renewables Energy (BREN), Chandra Asri Pacific (TPIA), Petrindo Jaya Kreasi (CUAN), and Barito Pacific (BRPT)—failed to counterbalance the broader market decline.

By sector, technology stocks fell the most, sliding 5% after PT DCI Indonesia Tbk (DCII) reversed course and plunged more than 8%. The financial sector dropped 1.95%, while real estate, non-primary consumer goods, and basic materials sectors also posted losses of over 2%.

A day earlier, the IHSG had climbed 70.01 points, or 1.11%, to 6,381.67. However, foreign investors continued to sell, recording a net sell of Rp 499.36 billion, mostly in large bank stocks.