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Jakarta, June 4, 2026 — Indonesia’s benchmark stock index, the IHSG, suffered a dramatic sell-off on Thursday morning, tumbling 4.30% to 5,600.
The decline, which followed a sharp 4.11% drop the previous day, erased trillions of rupiah in market capitalization and underscored the fragility of investor sentiment amid global and domestic pressures.
A Market in Freefall
The IHSG opened at 5,919.57 but quickly succumbed to heavy selling, touching a low of 5,873.00 before closing at 5,683.25.
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Market breadth was overwhelmingly negative: 654 stocks fell, only 48 advanced, while 258 remained unchanged.
Trading activity was brisk, with 8.77 billion shares exchanged, valued at Rp5.27 trillion.
The rout dragged total market capitalization down to Rp10,311 trillion, highlighting the scale of investor anxiety.
Global Headwinds
The sell off in Jakarta mirrored turbulence across Asia, driven by a combination of external shocks:
Wall Street slump U.S. equities fell sharply as inflation fears reignited concerns over tighter monetary policy.
Oil surge rising energy prices added pressure to emerging markets reliant on imports.
The resilient U.S. dollar weighed on the rupiah and local assets.
Regional contagion:
Kospi (South Korea): Down 2%, Nikkei 225 (Japan), Fell 1.4% after recent highs.
S&P/ASX 200 (Australia): Dropped 0.84%, Hang Seng futures (Hong Kong): Slipped to 25,312 from 25,633.
Domestic Response
In an effort to calm nerves, Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, met with S&P Global Ratings to reaffirm the country’s resilience.
He pointed to fiscal and monetary discipline as anchors of stability.
Strong domestic consumption acting as a buffer against external shocks. Positive investment growth and industrial downstreaming programs aimed at boosting value-added output.
Airlangga stressed that inflation remains under control and that investment flows are intact, despite the turbulence.
Foreign investors recorded nearly Rp1 trillion in net selling the previous day, signaling persistent capital flight.
Analysts warn that volatility is likely to persist, with global uncertainty and fragile domestic sentiment keeping the IHSG under pressure.
Market watchers are bracing for potential trading halts should losses deepen further, underscoring the precariousness of current conditions.
