IHSG closes down 3.54%, slipping to the 6,000 level

Jakarta, CNBC Indonesia — The Jakarta Composite Index (IHSG) closed sharply lower on Thursday trading (21 May 2026), amid broad selling pressure that persisted for almost the entire session. IHSG closed down 3.54% to 6,094.94. This sharp correction left the index down 223.56 points from the previous close at 6,318.50. From the outset, the IHSG fluctuated in positive territory and briefly touched a daily high of 6,378.81 before continuing to weaken to a low of 6,080.95. Market turnover was substantial, reaching Rp18.03 trillion, with a trading volume of 33.45 billion shares and 2.11 million trades. Selling pressure was broadly spread across the board. A total of 700 shares closed lower, 91 higher, and 168 unchanged. The market capitalisation of the Indonesia Stock Exchange fell to Rp10,553 trillion as the majority of jumbo-cap stocks weakened. Sectorally, all sectors were in the red. The utilities sector led the declines, falling 7.80%, followed by energy 6.87% and materials 6.09%. Among the index drivers, Amman Mineral International Tbk (AMMN) was the biggest positive contributor to the IHSG, adding 2.13 points. Indofood Sukses Makmur Tbk (INDF) up 1.42; Sumber Alfaria Trijaya Tbk (AMRT) up 1.34; Charoen Pokphand Indonesia Tbk (CPIN) up 1.26. Meanwhile the biggest drags on the IHSG came from Astra International Tbk (ASII), weighing the index by 14.96 points; Bumi Resources Minerals Tbk (BRMS) down 14.26 points; Bayan Resources Tbk (BYAN) down 11.52; Mora Telematika Indonesia Tbk (MORA) down 11.21. Pressure also came from other large-cap stocks such as Barito Pacific Tbk (BRPT), Telkom Indonesia (Persero) Tbk (TLKM), Chandra Asri Pacific Tbk (TPIA), and Merdeka Gold Resources Tbk (MDKA). While the IHSG slumped, most Asia-Pacific exchanges rose. Korea’s Kospi surged 8.42%, Japan’s Nikkei rose 3.14%, and Taiwan’s index gained 3.37%. The Australian ASX 200 rose 1.47%, NZX 50 gained 0.92%, and Thailand’s SET added 0.45%. Conversely, several regional markets remained in the red. Hong Kong’s Hang Seng fell 1.03%, Shanghai Composite declined 2.04%, Shenzhen down 2.07%. Bursa Malaysia fell 0.54%. Hasan Fawzi, the Chief Executive of the OJK’s Market Supervisory, Derivatives and Carbon Exchange, said the weakness in the IHSG this time differed from prior episodes driven by MSCI-related sentiment or rebalancing. He noted that various recent developments in global and domestic policy also impacted, directly or indirectly, the projections or perceptions of the performance of listed issuers over the short, medium and long term. Hasan explained that one cause of the IHSG correction also stems from investor reactions to several government policies announced by President Prabowo Subianto. As is known, President Prabowo has stated that sales of all Indonesia’s natural resources, from palm oil and coal to iron ferro-alloys, must be conducted through a state-owned enterprise named PT Danantara Sumberdaya Indonesia. This centralisation is specifically designed as a marketing facility to eradicate underpayment practices, transfer pricing, and ensure optimal absorption of foreign exchange earnings from exports within the domestic financial system. ‘That will surely be reflected in the short term,’ Hasan said when asked at the Parliament building in Jakarta on Thursday (21 May 2026). Meanwhile, acting President Director of the Indonesia Stock Exchange (BEI), Jeffrey Hendrik, emphasised that the spirit of investing in the capital market is for the long term. This responds to the trend of a sharp correction in the IHSG back to the 6,000s. ‘Yesterday, when there was a visit from the DPR and Danantara here, the message was conveyed that investing in the capital market is a long-term investment,’ Jeffrey said at the BEI Building, Thursday (21 May 2026). He said he believed Indonesia’s economic fundamentals would improve going forward. He also noted that President Prabowo has pledged to ease business, with licensing durations shrinking from two years to a matter of weeks. ‘That will positively affect the economy and, in turn, the capital market in the medium to long term, so we are positive,’ Jeffrey added.