Indonesia’s stock market experienced a notable decline on Thursday, with the Jakarta Composite Index (JCI) falling by 1.51%, or 80 points, to 5,247. This drop came despite efforts by Bank Indonesia to implement liquidity measures aimed at stabilizing the financial environment amid ongoing global economic uncertainties.
In early trading, the index showed volatility, fluctuating between 5,185 and 5,350. The market saw significant activity, with approximately 1.22 billion shares traded across 76,140 transactions, totaling a value of Rp 582.44 billion. A broad market downturn was evident, as 519 stocks declined, 54 advanced, and 106 remained unchanged.
Bank Indonesia has opted to maintain its benchmark interest rate at 5.75% and the lending facility rate at 6.5%, while slightly increasing the deposit facility rate by 25 basis points to 5%. The central bank also announced plans to enhance banking system liquidity by reducing the average reserve requirement for conventional commercial banks from 9% to 7% in two stages, first to 8% from November 1, 2026, and then to 7% from December 1.
Despite the domestic market’s weak performance, international investors showed interest in Indonesian stocks following a speech by President Prabowo Subianto. This was reflected in the US-listed iShares MSCI Indonesia ETF, which gained around 2%. However, analysts warned that a single session of gains does not necessarily indicate a sustained recovery trend.
Global economic concerns, including persistent inflation pressures and uncertainties about future market conditions, continue to weigh heavily on investor sentiment. The impact of these concerns was also felt across other Asian markets, with Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite all recording declines.