Indonesia’s stock market experienced a significant decline on Thursday, with the Jakarta Composite Index (JCI) dropping 1.51% to 5,247 points. This fall came despite efforts by Bank Indonesia to manage liquidity and bolster the domestic economy amid ongoing global economic uncertainties.
In the early hours of trading, the JCI fluctuated between 5,185 and 5,350 points. A total of approximately 1.22 billion shares changed hands in 76,140 transactions, amounting to a trading value of Rp 582.44 billion. The downturn was widespread, with 519 stocks falling, 54 advancing, and 106 remaining unchanged.
Bank Indonesia kept its benchmark interest rate steady at 5.75% and the lending facility rate at 6.5%. However, it raised the deposit facility rate by 25 basis points to 5%. The central bank outlined measures to attract foreign investment and support the rupiah, including a plan to reduce the average reserve requirement for conventional commercial banks from 9% to 7% in stages. The requirement will decrease to 8% from November 1, 2026, and to 7% from December 1.
Despite the domestic market’s weakness, Indonesian stocks drew interest from international investors following comments by President Prabowo Subianto. This interest contributed to a 2% gain in the US-listed iShares MSCI Indonesia ETF. However, analysts warned that one day of gains does not necessarily indicate a lasting recovery.
Global economic concerns, such as persistent inflation pressures and future market conditions’ uncertainty, continued to affect investor sentiment. Across Asia, markets also opened lower, with declines recorded in Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite.