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Jakarta — Indonesia’s benchmark stock index, the IHSG, suffered a sharp decline on Friday, closing below the symbolic 7,000 mark for the first time in weeks. The drop, driven largely by heavy losses in commodity-linked shares,underscored mounting investor unease amid global market volatility.
The index fell 2.86 percent, or 204.93 points, to 6,969.40, erasing gains from a four-day rally earlier this week.
Trading activity was brisk, with total transactions reaching Rp36.01 trillion, split between Rp19.68 trillion in the regular market and Rp16.33 trillion in negotiated trades.
Market breadth was overwhelmingly negative: 573 stocks declined, while only 131 advanced and 111 remained unchanged.
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Commodity Sector Hit Hard
The steepest losses came from the commodity sector, which has long been a pillar of Indonesia’s equity market. The IDXBASIC index plunged 7.34 percent, reflecting broad weakness in mining and resource companies.
– PT Timah Tbk (TINS) fell 14.88 percent
– PT Vale Indonesia Tbk (INCO) dropped 13.89 percent
– PT Archi Indonesia Tbk (ARCI) slid 13.71 percent
Analysts attributed the rout to sliding global commodity prices and concerns over demand in China, Indonesia’s largest trading partner. “The sell-off in mining stocks reflects both external pressures and investor fatigue after recent rallies,” said one Jakarta-based market strategist.
Healthcare Provides a Rare Bright Spot
While most sectors weakened, healthcare stocks managed to buck the trend. The IDXHEALTH index rose 0.70 percent, offering a rare pocket of resilience. Analysts noted that defensive sectors such as healthcare often attract investors during periods of heightened volatility.
Indonesia’s decline was the sharpest among seven major emerging market peers tracked in Asia.
While markets in Thailand, Malaysia, and the Philippines also fell, South Korea’s KOSPI eked out a 0.11 percent gain, highlighting divergent regional trends.
“The IHSG’s drop below 7,000 is psychologically significant,” said a regional economist. “It signals that investors are reassessing risk exposure in Indonesia, particularly in sectors tied to global commodity cycles.”
Foreign Investors Selectively Buying
Despite the broad sell-off, foreign investors were reported to accumulate shares in major banks such as Bank Rakyat Indonesia (BBRI) and Bank Central Asia (BBCA).
This selective buying suggests confidence in Indonesia’s financial sector, even as commodity linked equities falter.
Market watchers warn that continued weakness in global commodity prices could keep pressure on the IHSG in the near term.
However, selective foreign inflows into banking and resilience in defensive sectors may provide some cushion.
“Volatility is likely to persist,” said one analyst. “Investors should brace for further swings, but opportunities remain in sectors less exposed to commodity risk.”
