JAKARTA – The Jakarta Composite Index (IHSG) experienced a sharp downturn during the first session of trading today, plummeting 4.94% within the first three hours. According to data from the Indonesia Stock Exchange (IDX), the index retreated to 5,889.48, significantly lower than its morning opening level of 6,207.10. Market breadth was overwhelmingly negative, with 752 stocks declining, 169 remaining stagnant, and only 38 managing to stay in positive territory.
The sell-off heavily impacted stocks affiliated with major domestic conglomerates. Significant corrections were seen in PT Barito Pacific Tbk. (BRPT), which dropped 13.47% to Rp1,670, and PT Chandra Daya Investasi Tbk. (CDIA), which fell 13.79% to Rp750. Other notable decliners included PT Petrindo Jaya Kreasi Tbk. (CUAN), down 12.10% to Rp690; PT Petrosea Tbk. (PTRO), which plunged 15.00% to Rp4,080; and PT Chandra Asri Pacific Tbk. (TPIA), which dipped 13.42% to Rp1,645.
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The bearish trend extended to stocks associated with Happy Hapsoro. PT Bukit Uluwatu Villa Tbk. (BUVA) and PT Sanurhasta Mitra Tbk. (MINA) both tumbled 13.17%, closing at Rp725 and Rp290 respectively. Similarly, PT Rukun Raharja Tbk. (RAJA) fell 12.90% to Rp3,240, while PT Raharja Energi Cepu Tbk. (RATU) slid 12.11% to Rp4,680. Anthoni Salim’s portfolio also faced pressure, with PT Indofood CBP Sukses Makmur Tbk. (ICBP) down 5.15% to Rp6,450 and PT Indofood Sukses Makmur Tbk. (INDF) declining 4.18% to Rp6,300, alongside losses in PT PP London Sumatra Indonesia Tbk. (LSIP) and PT Salim Ivomas Pratama Tbk. (SIMP).
David Kurniawan, an Equity Analyst at Indo Premier Sekuritas, noted that investor focus for June 2026 has shifted from MSCI rebalancing to the authorities’ ability to stabilize the rupiah and restore foreign investor confidence. Although Bank Indonesia (BI) has raised interest rates to 5.25% to mitigate external pressures, the market remains cautious about the effectiveness of this policy in curbing currency volatility and capital outflows.
”If the rupiah shows stability in the coming weeks, market sentiment could improve, potentially paving the way for foreign capital to return to domestic stocks and bonds,” Kurniawan stated in his research report on Tuesday (2/6/2026).
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Beyond domestic factors, the U.S. Federal Reserve’s monetary policy remains a primary concern for market participants. The mid-June FOMC meeting is viewed as a major catalyst for the month, as investors await clearer signals regarding interest rate trajectories and U.S. inflation prospects. A hawkish stance from the Fed could maintain U.S. dollar strength, thereby limiting capital flows into emerging markets. Conversely, any indication of cooling inflation could provide a positive tailwind for risk assets, including Indonesian equities.
Meanwhile, in a report titled Equity Strategy: Repricing the Risk; Potential Tactical Reliefs to Emerge, analysts at BRI Danareksa Sekuritas (BRIDS) highlighted that the year-to-date decline in the IHSG reflects an increase in Indonesia’s risk premium. This downturn is not merely part of a broader sell-off across emerging markets.
The analysts identified four critical factors dampening investor appetite for Indonesian stocks: fiscal risks stemming from oil price hikes due to the closure of the Strait of Hormuz, declining policy predictability, a negative outlook on Indonesia’s debt rating, and the impact of the MSCI rebalancing. Furthermore, short-term risks, including S&P’s upcoming outlook revision in July and the June MSCI Market Accessibility review, continue to cast a shadow over the IHSG’s outlook.
”We are revising our December 2026 IHSG target to 7,200 from the previous 9,440. This reduction reflects the removal of the 40% conglomerate stock premium that previously influenced our long-term target,” the analysts concluded.
Disclaimer: This news article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any stocks. Investment decisions are the sole responsibility of the reader. Bisnis.com is not liable for any losses or gains arising from investment decisions based on this content.
Summary
The Jakarta Composite Index (IHSG) experienced a significant downturn during the first session of trading, falling 4.95% to 5,889.49. This sharp decline was driven by heavy selling across major conglomerate stocks, including PT Barito Pacific Tbk. and PT Petrosea Tbk., with 752 stocks recording losses. Market sentiment remains pressured by concerns over rupiah stability, foreign investor confidence, and the potential impact of future U.S. Federal Reserve monetary policies.
Analysts highlight that the current market volatility reflects rising risk premiums linked to fiscal concerns, oil price fluctuations, and declining policy predictability. Consequently, BRI Danareksa Sekuritas has downwardly revised its 2026 IHSG target to 7,200. Investors are now closely monitoring upcoming economic reviews and central bank actions as they navigate the challenging market environment.
