IHSG Slips 6.63 Per Cent Over the Week
The Jakarta Composite Index (IHSG) fell 6.63 per cent over the week. On Monday, 18 May 2026, the IHSG stood at 6,599.24, before sliding to 6,162.05 on Friday, 22 May 2026. At the opening on Friday, the IHSG briefly touched a year-to-date low of 5,976.07. However, the index ended higher, rising 1.1 per cent from 6,094.94 at the close on Thursday, 21 May 2026.
Finance Minister Purbaya Yudhi Sadewa is optimistic the index will recover next week as domestic fundamentals improve. ‘I think, technically speaking, next week it will run hard,’ he said at the Istana Negara Complex in Jakarta on Friday, 22 May 2026. He expects the IHSG to rebound as conditions improve and the Indonesian economy remains robust. Market participants were urged not to panic and to focus on fundamentals and to manage investment strategies according to their risk profiles.
Acting President Director of PT Bursa Efek Indonesia (BEI), Jeffrey Hendrik, said on Monday that market uncertainty in Indonesia remains quite high. But the late-week weakness was aligned with the broader Asian market during the long holiday period.
Uncertainty currently stems from a range of factors, including fluctuations in commodity prices, exchange-rate movements in various countries, and uncertainty over the resolution of the conflict in the Middle East. ‘Therefore, we must constantly remind investors to pay attention to fundamentals, not panic, analyse carefully, and tailor their investment strategies to their risk profiles,’ he said.
Overall, the decline in the IHSG was also due to stock rebalancing by MSCI. This sentiment persisted after MSCI expelled six Indonesian stocks from the Global Standard Index and 13 stocks from the Global Small Cap Index.
Equities also corrected on 19 May before the announcement of a new state-owned entity that would control exports of natural-resource commodities—later revealed to be PT Danantara Sumberdaya Indonesia. The IHSG trimmed from 6,599.24 to 6,370.68, down 3.46 per cent, on Wednesday, 20 May 2026.
Stocks seen as performing poorly included mining sector stocks, both oil and gas and minerals, followed by palm oil plantations and others.