IHSG Slips to the 6,000s as Bursa Chief Speaks Out

Jakarta, CNBC Indonesia — The Acting President Director of the Indonesian Stock Exchange (BEI), Jeffrey Hendrik, emphasised that the spirit of investing in the capital market is long-term. This responds to the trend of the IHSG’s sharp correction back to the 6,000 level.

‘During a visit by the DPR and Danantara yesterday, messages were conveyed that investing in the capital market is a long-term investment,’ Jeffrey said at the BEI Building, Thursday (21/5/2026).

He said he believed Indonesia’s economic fundamentals would improve in the future. In addition, he noted that President Prabowo Subianto has pledged to make it easier to do business, with licensing duration reduced from 2 years to a matter of weeks.

‘That will certainly have a positive effect on the economy and, later, the implications for the capital market in the medium to long term. So we are positive,’ he added.

The IHSG again slid in Thursday afternoon trading and moved further away from the psychological level of 6,100. By around 13:35 WIB, the IHSG fell 3.64% to 6,088.22. The weakness extended the pressure that began at the opening of trading this morning.

The IHSG briefly touched the daily low of 6,083.69, far below the previous close of 6,318.50. The intraday high was 6,378.81 before selling pressure intensified.

Over the past two days IHSG has been hit by sentiment surrounding the formation of the commodity export body by BUMN Special Export.

President Prabowo Subianto revealed that all sales of Indonesia’s natural resources including palm oil, coal, and ferro alloy must be conducted through a state-owned enterprise named PT Danantara Sumberdaya Indonesia.

This centralisation is specifically designed as an export marketing facility to root out underpayment, transfer pricing, and ensure optimal absorption of Devisa Hasil Ekspor (Export Earnings) within the domestic financial system.

Market watchers Reydi Octa said the plan to form this export BUMN could have mixed impacts on mining issuers, particularly coal. He noted that the issuers’ performance could be pressured, while near-term sentiment is expected to be mixed to negative.

On one hand, the government wants to strengthen control, export negotiating position, and rupiah stability. On the other, the market fears if the mechanism becomes too centralised and reduces exporters’ flexibility and agility.

For coal issuers already affected by the DMO (Domestic Market Obligation), Reydi said the one-door export policy could be perceived as additional interference in market mechanisms.

‘If implementation lengthens bureaucracy or curtails sale flexibility, margins and cash flow of issuers could be pressured. In terms of shares, near-term sentiment is likely mixed to negative as investors await technical policy details,’ he said when contacted by CNBC Indonesia on Wednesday (20/5/2026).

Economist Dipo Satria Ramli also said the ‘spirit’ of establishing this export BUMN is positive for addressing invoicing and transfer pricing issues. However, he highlighted concerns about the timing, governance, and information transparency.

First, the timing of its formation amid global uncertainty. Next, governance concerns and disclosure.

Moreover, Dipo noted that the existence of the export BUMN could reduce entrepreneurs’ profits, which would be followed by a decline in the valuations of those companies.

‘There will likely be a sell-off in the stock market affected by this effort. The government, I assume, has already considered this,’ he said when contacted by CNBC Indonesia on Wednesday (20/5/2026).

Market analyst Elandry Pratama said the market responded negatively to the commodity export body plan because of fears of broader state intervention in the mining sector, particularly coal, which had already been burdened by the DMO.

For investors, the main issue is not merely the new body, but the risk of increased control over prices, export volumes, and selling mechanisms. If this occurs, margins and issuers’ business flexibility could be constrained.

‘This is what caused the market to discount coal stocks,’ Elandry noted. He added that foreign investors are usually highly sensitive to regulatory uncertainty. The Indonesian coal sector has long attracted due to large cash flows, high dividends, and a relatively clear market mechanism. Therefore, when there is potential for further intervention, risk premia rise and valuations can be depressed even if profits remain strong.

‘I see this sentiment as dangerous if it creates the perception that the government is too aggressively entering the commodity business mechanism. In the short term, this could lead investors to wait and see or reduce exposure to mining stocks,’ Elandry said.

However, if the implementation is limited to strengthening export coordination, expanding markets, and optimising foreign exchange earnings without disrupting the pricing mechanism of issuers, the impact could be more contained.

‘So in my view, the market today fears not the export body itself, but the potential for further intervention that could reduce profitability and certainty of operation for mining issuers going forward,’ he added.

(mkh/mkh)