IHSG slips 3.54% on Thursday (21 May 2026) as market reacts negatively to plan for state-owned export regulator

JAKARTA, KOMPAS.com — The Jakarta Composite Index (IHSG) closed weaker in Thursday trading (21 May 2026). The index slid 3.54% to 6,094.941 points, breaking the psychological 6,100 level.

Market observer and founder of Republik Investor, Hendra Wardana, said the sharp weakness indicates ongoing market pressure, even as most of Asia’s stock markets rose.

He attributed the main pressure to both domestic and global sentiment. Domestically, the market reacted negatively to rising policy uncertainty surrounding the plan to form Danantara Sumberdaya Indonesia (DSI), the regulator for the export of natural resources (SDA), which is seen as potentially lengthening bureaucracy and reducing the competitiveness of national exports.

“From within the country, the market is responding negatively to the increasing policy uncertainty related to the plan to form a regulator for natural-resource exports that is expected to lengthen bureaucracy and lower export competitiveness,” Hendra told Kompas.com on Thursday afternoon.

Under the rules, export of a number of strategic commodities must be conducted through a government-designated state-owned enterprise.

Currently, Danantara Indonesia has officially appointed former PT Vale Indonesia Tbk (INCO) director Luke Thomas Mahony as the President Director of DSI. The appointment of the former mining executive is seen as a first move by the government to strengthen the governance of export of natural resources.

Hendra also said investor concerns were compounded by the rupiah’s weakness, which remained around Rp 17,600 per US dollar, and by heavy foreign outflows that have since the start of the year reached more than Rp 51 trillion.

“The concerns are exacerbated by the rupiah’s weakness around Rp 17,600 per US dollar, and the heavy foreign outflows that have already surpassed Rp 51 trillion since the start of the year,” he said.