Indonesia’s stock market experienced a notable downturn on Thursday as the Jakarta Composite Index (JCI) fell 1.51%, or 80 points, to 5,247. This drop came amid investor reactions to domestic monetary policies and the ongoing uncertainties in the global economy. The index’s early trading volatility saw it oscillate between 5,185 and 5,350 points, with approximately 1.22 billion shares changing hands in 76,140 transactions, totaling Rp 582.44 billion in value.
Despite Bank Indonesia’s efforts to bolster liquidity, market losses were widespread, impacting 519 stocks negatively, while only 54 advanced and 106 remained unchanged. The central bank’s decision to hold the 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%, were notable measures. Additionally, Bank Indonesia announced plans to reduce the average reserve requirement for conventional commercial banks from 9% to 7% in two stages, with changes effective from November 1, 2026, and December 1, respectively.
Interestingly, Indonesian stocks managed to attract some international investor interest following a speech by President Prabowo Subianto, which led to a gain of around 2% in the US-listed iShares MSCI Indonesia ETF. However, analysts warned that this single session gain might not indicate a sustained recovery in the market.
Compounding the domestic challenges were global economic concerns, such as persistent inflation pressures and uncertainties about future market conditions. These factors contributed to a broader decline across Asian markets, with indices such as Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite all recording losses.