Breaking: Jakarta Composite Index Falls 2% — Here’s Why
Jakarta, CNBC Indonesia — The Jakarta Composite Index (JCI) extended its losses during Tuesday afternoon trading (27 October 2026), standing at 5,265.50 at 2.29pm Western Indonesian Time. It was down 107.60 points, or 2.00%.
The JCI had been weakening since trading began at 9am, opening at 5,357.97, slightly below its previous close. The index briefly rose to an intraday high of 5,418.14 in the morning session, but the gains did not last. Shortly before 10am, it reversed direction and continued to fall.
Selling pressure intensified in the afternoon. After moving sideways between 5,340 and 5,360 from 10.30am to 1pm, the JCI came under renewed sharp pressure shortly before 2pm. It briefly touched an intraday low of 5,264.
Trading volume stood at 215.64 million lots, with transaction value reaching Rp8,422.18 billion.
Refinitiv data showed that the index’s afternoon weakness was driven by infrastructure shares, which plunged 5.8%, followed by technology shares, down 2.9%, and energy shares, which fell 2.2%.
Among the stocks weighing on the JCI were PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Telkom Indonesia (Persero) Tbk (TLKM), PT Bank Mandiri (Persero) Tbk (BMRI), PT Barito Renewables Energy Tbk (BREN) and PT Bayan Resources Tbk (BYAN).
Other stocks contributing to the market’s decline included PT Astra International Tbk (ASII), PT United Tractors Tbk (UNTR), PT Chandra Asri Pacific Tbk (TPIA), PT Hanjaya Mandala Sampoerna Tbk (HMSP) and PT Gudang Garam Tbk (GGRM).
Indonesia’s financial markets are being shaped by a range of domestic and international factors. Gains on Wall Street are expected to provide a positive catalyst.
New policies from the Indonesia Stock Exchange (IDX) are also expected to bolster investor confidence. Overseas, developments in the war and Chinese economic data are among the factors likely to move markets today.
Internationally, investors are monitoring developments in the conflict, including a meeting between Saudi Arabia, Türkiye and Pakistan with Iran, as well as easing oil prices.
Saudi Arabia, Türkiye and Pakistan met Iranian officials in Tehran on Monday to ease tensions in the Middle East. The meeting took place amid an increase in Houthi attacks on Saudi Arabia and the threat of fresh attacks by the United States.
The four countries agreed to continue dialogue to strengthen peace and security co-operation. Pakistan also proposed establishing a regional non-aggression network and finding a solution to the conflict acceptable to Washington and Tehran.
Tensions nevertheless remain high. US President Donald Trump has left open the possibility of attacking Iran again, while Tehran is demanding that the blockade of its ports and sanctions on oil exports be lifted before it discusses its nuclear programme.
Meanwhile, Egypt’s parliament approved military support to help defend Saudi Arabia. The move strengthens regional defence co-operation amid a conflict that is disrupting shipping through the Strait of Hormuz and driving up global energy prices.
Global crude prices fell on Monday (26 October 2026) amid hopes that the Middle East conflict might ease. However, attacks on Saudi Arabia and shipping disruptions continue to keep investors on alert.
Brent crude fell 0.8% to US$115.81 a barrel, while US West Texas Intermediate (WTI) crude dropped 1.46% to US$101.76 a barrel.
The pullback followed gains in both benchmarks the previous week. Brent rose 6% over the week, while WTI gained 2.3%.
Despite the decline, oil prices remain elevated as the risk of energy supply disruptions persists. Developments in the Middle East conflict will be an important factor in determining their next direction.
Domestically, the IDX is preparing a number of new policies to tighten capital-market oversight. These include reducing share suspensions and freezing securities accounts suspected of violations, as well as strengthening investigations into suspicious transactions.
The IDX also plans to make less use of Unusual Market Activity (UMA) announcements as an initial supervisory measure.
Meanwhile, the committee assessing shares with high ownership concentration (High Shareholding Concentration, or HSC) will be expanded to nine members, including five independent external members.
From 2 November 2026, HSC-category shares will also be excluded from the JCI calculation, alongside changes to the index review schedule. The measures are intended to strengthen transparency, safeguard trading liquidity and increase investor confidence in Indonesia’s capital market.