Indonesia’s stock market faced a downturn on Thursday as the Jakarta Composite Index (JCI) fell by 80 points, or 1.51%, to 5,247. This drop occurred as investors grappled with domestic monetary measures and a backdrop of global economic uncertainty. In early trading, the index showed variability, fluctuating between 5,185 and 5,350. The trading session saw approximately 1.22 billion shares exchanged over 76,140 transactions, totaling a value of Rp 582.44 billion. The market was broadly affected, with 519 stocks declining, 54 advancing, and 106 remaining unchanged.
Bank Indonesia, the country’s central bank, kept its benchmark interest rate steady at 5.75% and maintained the lending facility rate at 6.5%. However, it raised the deposit facility rate by 25 basis points to 5%. The bank also outlined plans to enhance banking system liquidity and attract foreign investment to support the rupiah. Notably, Bank Indonesia announced a phased reduction of the average reserve requirement for conventional commercial banks from 9% to 7% by December 2026, with an initial decrease to 8% starting November 1, 2026.
Despite the downturn in the domestic market, Indonesian stocks garnered interest from international investors following remarks by President Prabowo Subianto. The US-listed iShares MSCI Indonesia ETF saw an increase of about 2%, though analysts warned that this single session of gains might not indicate a sustained recovery.
Global economic issues continued to impact market sentiment, with persistent inflation pressures and uncertainty regarding future market conditions. Asian markets reflected similar challenges, as major indices like Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite all recorded declines.