IDX Composite Plummets Back to 5,000 Level; Analysts: Investors Seeking Safer Assets

The Indonesia Stock Exchange (IDX) Composite plummeted significantly during trading on Wednesday, 3 June 2026. At the start of the second session, around 1:30 PM WIB, the index had dropped by 335 points, or 5.41 per cent, returning to the 5,86_60 level.

Capital market observer Elandry Pratama explained that the weakening of the IDX Composite is due to investors reducing their exposure to risky assets and reallocating funds into safer assets. He noted that this is a response to a combination of both domestic and global sentiments.

“The pressure was quite widespread, particularly affecting large-cap stocks that hold dominant weight in the index, meaning the decline had a significant impact on the IDX Composite,” Elandry said in Jakarta on Wednesday.

He explained that domestic sentiment stems from the weakening of the Rupiah, which is approaching the level of Rp 18,000 per US Dollar. This has pressured the stock market sentiment by increasing concerns regarding macroeconomic stability and the potential for capital outflow.

“Additionally, technical pressure resulting from the breach of support levels has accelerated selling activity in the market,” Elandry added.

Regarding international factors, he explained that market participants are responding to increasing global economic uncertainty and a ‘risk-off’ sentiment, which is driving the movement of funds into assets considered safer.

According to him, foreign investors currently tend to be in a ‘wait and see’ mode, focusing primarily on the stability of the Rupiah exchange rate, the direction of global interest rates, and Indonesia’s economic growth prospects. As long as Rupiah volatility remains high, he noted that foreign fund flows are likely to remain cautious.

“However, so far, I see more short-term risk reduction rather than a change in the fundamental view of the Indonesian market as a whole,” said Elandry.

Regarding future projections, Elandry predicts that in the short term, the IDX Composite is likely to remain volatile, as global sentiment and Rupiah exchange rate movements remain dominant factors. However, after such a deep correction, the opportunity for a technical rebound remains open if selling pressure begins to subside and foreign fund flows show signs of stabilisation.

“Investors should focus on stocks with strong fundamentals and maintain risk management amidst market conditions that remain sensitive to external sentiments,” he advised.