JAKARTA, March 18 (Xinhua) -- The Indonesia Stock Exchange (IDX) temporarily halted stock trading on Tuesday morning after the Composite Stock Price Index (IHSG) dropped by 5 percent.

IDX Chairman Iman Rachman said that while such a significant decline is unusual, it was driven by both internal and external factors, including global economic uncertainty.

"Many investors are currently adopting a wait-and-see approach," Iman said.

Fundamentally, Iman said, companies listed on the IDX remain solid, as reflected in improved financial reports in 2024 compared to the previous year.

Kautsar Primadi Nurahmad, corporate secretary of the IDX, said the pause in trading aimed to provide market participants with time to respond to the current situation and maintain trading stability.

Achmad Nur Hidayat, an economist from the National Development University "Veteran" Jakarta, noted that the IHSG decline is not merely a reflection of global uncertainty but also a warning that Indonesia's economic model is overly reliant on commodities, and is trapped in a debt cycle to finance populist programs such as free meals and social assistance.

"If the government does not immediately halt these reckless policies, the crisis of investor confidence will deepen, and the IHSG drop will only be the beginning of a larger chain of problems," Achmad said. Enditem

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