IHSG Plunges Again by 1.43% Pressured by Performance of This Technology Issuer

The Jakarta Composite Index (IHSG) plunged once more during trading today, Tuesday (12/5/2026), despite showing strength at the market open, where the IHSG surged robustly and even rose by 1%. However, by the end of the first session, the IHSG reversed course and tumbled to 6,807.13, a decline of 1.43%. A total of 456 stocks weakened, 192 strengthened, and 166 remained stagnant. Trading value reached Rp7.50 trillion, involving 18.90 billion shares in 1.49 million transactions. On a sectoral basis, the technology sector exerted the greatest pressure with a 5.07% correction, followed by utilities at -2.59% and healthcare weakening by -2.09%. From the stock perspective, PT Mora Telematika Indonesia Tbk (MORA) was the heaviest weight on the IHSG, contributing a 24.2-point decline to the index. MORA shares initially surged strongly with a gain of over 15% and served as the main driver of the IHSG. However, shortly thereafter, MORA plummeted, touching the 15% lower auto-reject limit at 7,650. Next, DCI Indonesia (DCII) pressured the index by 9.81 points, PT Bayan Resources Tbk (BYAN) by 8.74 points, and PT Bank Central Asia Tbk (BBCA) by 7.03 points. The performance of Indonesian stocks aligned with movements in the Asia-Pacific region’s exchanges, where the majority of benchmark indices traded in the red. Nevertheless, the IHSG’s performance was recorded as one of the worst today, with only South Korea’s KOSPI index posting a larger decline, exceeding 3%. European markets are also expected to open in the red, with several negative sentiments continuing to loom. Domestically, market participants tended to engage in selling actions and a wait-and-see approach ahead of the MSCI review announcement scheduled for today. The market is concerned that Indonesia may once again experience a reduction in its weight in the global MSCI index, which could trigger an outflow of foreign funds. Ahead of the announcement, regulators and market participants alike assess that Indonesia’s capital market reforms could indeed trigger short-term pressure but are believed to have positive impacts in the long term. Chairman of the Financial Services Authority (OJK) Board of Commissioners, Friderica Widyasari Dewi, stated that they are still awaiting the MSCI announcement results, while emphasising that the capital market reform steps taken by the regulator are part of efforts to strengthen market integrity. “Even if there is short-term adjustment, we see this as short-term pain. But Insha Allah, long-term gain,” Friderica said at the Indonesia Stock Exchange (BEI) building on Monday (11/5/2026). The Indonesia Stock Exchange acknowledges the potential for a short-term reduction in Indonesia’s MSCI weight if no new stocks are added to the index. “If that is done by MSCI and no new stocks enter the MSCI, in the short term, Indonesia’s weight might decrease. But that is short-term pain for long-term gain,” said Jeffrey. BEI emphasises that capital market reforms will continue, including encouraging issuers to increase free float to meet global standards. In addition to domestic factors, global sentiment continues to burden emerging markets following the strengthening of the US dollar and rising yields on US government bonds, prompting investors to reduce exposure to risky assets. Despite the pressure on the IHSG, several stocks still supported the index. PT Merdeka Gold Resources Tbk (MDKA) was the main driver with a 2.58-point contribution to the index rise, followed by PT Dian Swastatika Sentosa Tbk (DSSA), PT Chandra Asri Pacific Tbk (TPIA), and PT Pacific Strategic Financial Tbk (APIC). The rupiah exchange rate began morning trading at a historic weakening level, reaching Rp17,500/US.AccordingtoRefinitivdata, theGarudacurrencyweakenedtoRp17, 500/US at 9:15 WIB. At the open, the rupiah opened in the red with a 0.43% weakening to Rp17,480/US$. The DXY also strengthened 0.21% at open to 98.115. This was triggered by US President Donald Trump stating that the ceasefire with Iran is now “on the brink” after Tehran rejected Washington’s proposal to end the war. Iran demands an end to the conflict on all fronts, including in Lebanon, compensation for war damage, lifting of the US naval blockade, guarantees of no further attacks, and restoration of its oil exports. Tehran also asserts control over the Strait of Hormuz, a route that typically carries about 20% of the world’s oil and gas supply. Trump described Iran’s response as “completely unacceptable” and said the ceasefire in effect since 7 April is now very fragile. Iran insists its demands are legitimate, while Parliament Speaker Mohammad Baqer Qalibaf warned that Iran’s military is ready to respond to any aggression.