Analysis of the Impact of Finance MinisterTurnover on IHSG Volatility

Abstract

This study aims to analyze the impact of the change of Minister of Finance on the volatility of the Indonesia Composite Stock Price Index (IHSG) by comparing market conditions before and after the appointment on September 08, 2025. This research employs a quantitative approach using an event study design, with an observation period of 30 trading days consisting of 15 days before and 15 days after the event, resulting in 39 effective trading days due to market holidays. Daily IHSG closing price data are used to calculate stock returns and volatility, where volatility is measured using the standard deviation of returns. The results show that IHSG volatility before the event (0.00986) is higher than after tjuehe event (0.00758), indicating that market fluctuations decreased following the appointment and suggesting that the market became more stable after uncertainty surrounding the leadership transition was resolved. However, this study is limited by the relatively short observation period and the use of a single indicator without incorporating broader macroeconomic variables. The findings imply that investors should not overreact to political events, as the market tends to adjust and stabilize once information is fully absorbed. This research offers value by focusing specifically on IHSG volatility as a response to a political event, particularly the change of Minister of Finance in Indonesia.