The Purbaya Effect, Banking Stock Rebound, and Implications for Public Policy in the National Economy
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Abstract
This study examines the so-called Purbaya Effect, referring to the influence of credible economic leadership on the rebound of banking stocks in Indonesia and its broader implications for public policy and the national economy. Using a qualitative approach supported by secondary data on stock market performance, investor sentiment, and regulatory responses, the study finds that leadership credibility significantly reduces uncertainty and restores confidence in the financial sector. The rebound of banking stocks, following periods of market turbulence, demonstrates the central role of strategic communication and policy signaling in stabilizing capital markets. Furthermore, the findings highlight how banking recovery contributes to macroeconomic resilience, capital flows, and fiscal stability. This paper concludes that the Purbaya Effect not only explains short-term market corrections but also underpins long-term policy directions that strengthen economic governance and public trust.
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