Assessing Financial Market Volatility: Multi-Dimensional Approaches on Indonesian Health Crisis Management

Abstract

This study examines the volatility of Indonesia's financial markets during global health crises, particularly focusing on the COVID-19 pandemic. The research explores how such crises impact market stability, investor behaviour, and economic health. The primary research question investigates the extent to which global health crises influence financial market volatility in emerging economies, using Indonesia as a case study. The methodology involves a qualitative analysis supported by an extensive literature review. Data was gathered from various academic sources, financial reports, and statistical analyses to identify patterns and themes related to market behaviour during crises. The findings indicate that Indonesia’s financial markets are significantly affected by global health events, with heightened volatility and instability observed during the pandemic. This increased volatility is attributed to external factors such as global economic conditions and investor uncertainty. The results also highlight the vulnerability of Indonesia’s markets to international disruptions, emphasizing the importance of robust economic policies and global stability for maintaining market resilience. The study concludes that global health crises have profound implications for Indonesia’s financial markets, necessitating coordinated policy responses and strategic planning to mitigate adverse impacts and foster long-term stability.