Indonesia’s stock market experienced a notable decline on Thursday, with the Jakarta Composite Index (JCI) dropping 1.51% to 5,247 points. This downturn came as investors evaluated domestic monetary policies amid ongoing global economic uncertainties. The index fluctuated between 5,185 and 5,350 points during early trading, with approximately 1.22 billion shares exchanged across 76,140 transactions, totaling a value of Rp 582.44 billion.
Market losses were widespread, with 519 stocks declining, 54 advancing, and 106 remaining unchanged. Despite Bank Indonesia’s efforts to bolster liquidity and stabilize the market, the impact was limited. The central bank maintained its benchmark interest rate at 5.75% and the lending facility rate at 6.5%, while increasing the deposit facility rate by 25 basis points to 5%. Additionally, Bank Indonesia announced plans to reduce the average reserve requirement for conventional commercial banks from 9% to 7% in two stages by December 2026, aiming to attract foreign investment and support the rupiah.
In spite of the domestic market’s weakness, international investors showed interest in Indonesian stocks following a speech by President Prabowo Subianto. The US-listed iShares MSCI Indonesia ETF gained approximately 2%, though analysts cautioned that this single session of gains might not indicate a sustained recovery.
Global economic factors continued to weigh heavily on investor sentiment, including persistent inflationary pressures and uncertainty about future market conditions. The broader Asian markets reflected similar concerns, with other major indices such as Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite all opening lower.
