TEMPO.CO, Jakarta - Stock trading on the Indonesia Stock Exchange on Tuesday, March 18, 2025 experienced a temporary suspension or trading halt due to a drastic point decline. The Center of Economic and Law Studies (Celios) assesses that the plunge of the Composite Stock Price Index (IHSG) occurred because the government has not succeeded in convincing the public and investors about the future of Indonesia's economy.

According to Celios Executive Director Bhima Yudhistira, the lack of trust in the government has been evident in recent times. 'Our trust in the government, in public policies, can be said to be at a minus right now,' said Bhima in an online discussion on the X @dirtyvote social media on Tuesday, March 18, 2025.

One of the reasons, Bhima said, is the increasing active role of the military in the era of President Prabowo Subianto. For instance, in the Nutritious Free Meal (MBG) program and the development of the food estate in Merauke, Papua. The involvement of the military in non-military posts, Bhima said, raises doubts about the future of Indonesia's economy.

Bhima assessed that the market had anticipated from the beginning that Prabowo would strengthen the role of the Indonesian National Armed Forces (TNI) while in office. The market, he said, then showed a significant reaction to the plan to revise Law Number 34 of 2004 concerning the TNI, which would extend the length of service and add civilian positions that the military can hold.

Bhima assessed that the discourse on the revision of the TNI Law failed to provide convincing signals to investors. Moreover, Bhima said at present the economic conditions are showing signs of weakening. 'What is observed is when the economic situation worsens, but then the attention (of the government) is focused on defense and security factors. This is not matching, which direction is the government actually heading in terms of governance?' Bhima said.

In addition to the discourse on the revision of the TNI Law, several other policies of President Prabowo have also drawn scrutiny. According to Bhima, the government's steps to establish the National Strategic Investment Agency (BPI Danantara) and budget cuts in ministries/agencies have also failed to convince investors.

On Tuesday, March 18, 2025, the Composite Stock Price Index or IHSG plummeted by 5.02 percent to the 5,146 level. Trading was even halted for 30 minutes (trading halt) after the index dropped by more than 5 percent, before closing the session at the 6,076 level (-6.11 percent).

Trading halt is a stock exchange policy to temporarily suspend stock trading. This is done to correct imbalances, fix technical errors, or in the event of excessively rapid index movements. The exchange implements this measure to prevent potential investor losses due to extreme price fluctuations.

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