Jakarta, CNBC Indonesia - The Jakarta Composite Index (IHSG)\nexperienced a significant drop in early trading today. The benchmark\nindex fell by 5% and reached a low of 5,644.23 at 09.57 WIB.<\/p>\n
This represents a sharp decline compared to the previous day\u2019s\nclosing of 5,941.07.<\/p>\n
The continued decline in the index confirms that the IHSG has fallen\nback to its lowest level since December 1, 2020, reflecting an aggregate\nmarket valuation equivalent to the uncertainty of the COVID-19 pandemic\nera.<\/p>\n
Danantara Sentiment and Rupiah Depreciation<\/p>\n
The continued correction in the benchmark index is still triggered by\nthe accumulation of macroeconomic and institutional sentiment that has\nnot yet subsided. The impact of the downward revision of the outlook\nfrom Danantara Investment Management the previous day continues to put\npressure on the risk preferences of institutional investors.<\/p>\n
This pressure in the equity market is happening in tandem with the\ndepreciation of the Rupiah exchange rate, which has now broken through a\nnew psychological level, at Rp18,000 per US dollar.<\/p>\n
This significant weakening of the currency raises rational concerns\nfrom market participants about the potential increase in operational\nburdens for issuers with large foreign currency liabilities.<\/p>\n
Anticipation of S&P and MSCI Reports<\/p>\n
The current vulnerability of the stock exchange is at a crucial\nphase, given that the publication of the S&P Global Ratings rating -\nwhich has reportedly triggered selling - has not yet been officially\nreleased. In addition, market volatility is also driven by investor\nanticipation ahead of two important MSCI agendas.<\/p>\n
The global index provider is scheduled to publish the Market\nAccessibility Review on June 19, followed by the Classification Review\nannouncement on June 24.<\/p>\n
The risks associated with potential adjustments to the evaluation and\nclassification from MSCI logically encourage investors, especially\nforeign investors, to accelerate mitigation steps by reducing exposure\nto risky assets in the Indonesian capital market before the announcement\nis made.<\/p>\n
Volatile Period Since the 2020 Pandemic<\/p>\n
Since the Covid-19 pandemic, the IHSG has experienced at least four\nmajor periods of volatility, namely the pandemic in 2020-2021, the\noutbreak of the Russia-Ukraine war (February 2022), the start of the\ntrade war (April 2025), and this year.<\/p>\n
CNBC Indonesia notes the decline in these crisis periods from the\nclosing before the period to the lowest point. The distance between the\nperiod before the volatility and the worst low point is this year, at\n3,000.<\/p>\n
Disclaimer: This article is a journalistic product in the form of\nCNBC Indonesia Research\u2019s views. This analysis is not intended to\nencourage readers to buy, hold, or sell related investment products or\nsectors. The decision is entirely up to the reader, so we are not\nresponsible for any losses or profits arising from that decision.<\/p>\n
CNBC INDONESIA RESEARCH<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-at-lowest-level-since-december-1-2020-a-look-at-the-past-four-crises-1780552042", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }