IHSG closes down 2.71 per cent to 6,147 in Session I

IHSG closed down 2.71 per cent to 6,147 in the first trading session on Thursday, 21 May 2026. The index had briefly risen 47.99 points or 0.76 per cent to 6,366.4 at the opening of Thursday’s trading.

According to data from the Indonesia Stock Exchange, all sector indices were in the red. The deepest decline was in the basic materials sector index (IDXBASIC), which fell 6.34 per cent. The energy sector (IDXENERGY) dropped as much as 4.99 per cent. The transportation and logistics index (IDXTRANS) was down 4.70 per cent, and the industrial sector (IDXINDUST) declined 4 per cent.

The IHSG’s decline had already begun on Wednesday, trading down to 6,318.5. Ratna Lim, Head of Research at Phintraco Sekuritas, said domestically, market participants were responding to President Prabowo Subianto’s address to the DPR plenary session, which outlined the Macro Economic Framework and Key Fiscal Policy (KEM-PPKF) for the 2027 RAPBN.

“IHSG closed weaker on Wednesday after moving fluctuating throughout the session,” she said, quoted by Antara.

In his address, the President announced the government’s plan to require the export of Natural Resource Commodities (SDA) and that this would be carried out through state-owned enterprises designated by the government as the sole exporters. The Head of State also instructed Himbara (the Association of State-Owned Banks) to lower lending rates for small borrowers.

On the same day, Bank Indonesia raised the policy rate, commonly referred to as the BI Rate, by 50 basis points to 5.25 per cent at the May 2026 meeting of the Board of Governors (RDG).

The rise exceeded the consensus expectation of 5 per cent. The BI Rate increase supported the rupiah, strengthening by 0.29 per cent to Rp 17,654 per US dollar.

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