Jakarta, Jan. 30 -- Finance Minister Purbaya Yudhi Sadewa believes that the resignation of Indonesia Stock Exchange (IDX) President Director Iman Rachman will create positive sentiment for Indonesia's broader economy.

Purbaya said Rachman demonstrated accountability for recent capital market turmoil, noting that the IDX's response to feedback from Morgan Stanley Capital International (MSCI) had triggered a deep correction in the Jakarta Composite Index.

"I see this as a positive signal. It shows that investors in both the capital market and the real sector see that we are managing problems quickly and seriously," Purbaya told reporters in Jakarta on Friday.

He warned that without decisive action to restore confidence, Indonesia's econo...