Indonesia’s stock market experienced a notable downturn on Thursday, with the Jakarta Composite Index (JCI) dropping 1.51%, or 80 points, to 5,247. This decline came despite Bank Indonesia’s efforts to bolster liquidity through monetary measures. Investors remain cautious amid ongoing global economic uncertainties.
The JCI fluctuated between 5,185 and 5,350 during early trading, with approximately 1.22 billion shares changing hands across 76,140 transactions, totaling a value of Rp 582.44 billion. The market saw widespread losses, with 519 stocks declining, 54 gaining, 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 increased the deposit facility rate by 25 basis points to 5% and unveiled measures aimed at attracting foreign investment and supporting the rupiah. In a bid to enhance banking system liquidity, the central bank plans to reduce the average reserve requirement for conventional commercial banks from 9% to 7% in two phases, starting with a decrease to 8% on November 1, 2026, and further to 7% on December 1.
Despite these domestic challenges, Indonesian stocks drew interest from international investors following a speech by President Prabowo Subianto. The US-listed iShares MSCI Indonesia ETF saw a gain of about 2%, although analysts cautioned that this single session uptick might not indicate a sustained recovery.
Global economic concerns, including persistent inflation pressures and uncertainty over future market conditions, continue to weigh heavily on investor sentiment. Asian markets mirrored this trend, with Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite all experiencing declines.