Indonesia’s stock market experienced a significant decline on Thursday, with the Jakarta Composite Index (JCI) falling by 1.51%, or 80 points, to close at 5,247. This drop occurred as investors navigated domestic monetary strategies and ongoing global economic uncertainties.
In the early hours of trading, the JCI fluctuated between 5,185 and 5,350, with a high trading volume of approximately 1.22 billion shares across 76,140 transactions, amounting to a total value of Rp 582.44 billion. The market saw widespread losses, with 519 stocks declining, 54 advancing, and 106 remaining unchanged.
Bank Indonesia held its benchmark interest rate steady at 5.75% and maintained the lending facility rate at 6.5%. However, it increased the deposit facility rate by 25 basis points to 5%. Additionally, the central bank unveiled measures aimed at attracting foreign investment and bolstering the rupiah, including plans to decrease the average reserve requirement for conventional commercial banks from 9% to 7% in two stages. The reduction will begin with a drop to 8% starting November 1, 2026, followed by a further decrease to 7% from December 1.
Despite the domestic market’s downturn, Indonesian stocks garnered international interest, partly due to a speech by President Prabowo Subianto. This interest was reflected in the U.S.-listed iShares MSCI Indonesia ETF, which gained approximately 2%. However, analysts warned that one session of gains does not necessarily indicate a prolonged recovery.
Broader global economic concerns, such as persistent inflation pressures and unpredictability in future market conditions, continued to impact investor sentiment. The negative sentiment was also mirrored in Asian markets, including Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite, all of which recorded declines.