JCI Expected to Remain Weak amid Rumors and Market Pressure
JCI Expected to Remain Weak amid Rumors and Market Pressure
05 Jun 2026 12:15 WIB
Voice of Indonesia
Key Points
Phintraco Sekuritas analysts predict that the Jakarta Composite Index (JCI) will remain volatile and is likely to weaken at the support level of 5,700–5,800.
Stock trading continues to face selling pressure due to rampant rumors in the domestic market amid persistently high global uncertainty.
RRI.CO.ID, Jakarta - The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) is expected to remain at risk of weakening today. At the close of trading on Thursday, the JCI fell 1.70 percent to 5,839.79.
“The JCI’s decline has slowed from its daily low, but its movement is still expected to be volatile and likely to weaken. The JCI will test the support level in the 5,700–5,800 range,” said the Phintraco Sekuritas Analyst Team on Friday, June 5, 2026.
According to Phintraco, stock trading remains under selling pressure amid widespread rumors in the domestic market. “Rumors emerging amid persistently high global uncertainty are affecting investor confidence,” they stated.
Meanwhile, pressure on the rupiah continues, with the currency breaking through a record low of IDR 18,000 per USD. Another market concern is the enactment of the revised Bill on the Development and Strengthening of the Financial Sector (P2SK) into law, part of Indonesia’s broader financial sector reforms.
“This law, among other things, strengthens the mandate of the Financial Services Authority (OJK) and capital market regulations, including plans for the demutualization of the IDX and enhanced transaction integrity,” said the Phintraco team.
With the implementation of the law, market liquidity is expected to increase, supported by the expanded role of banks in the capital market. It also strengthens financial institutions and instruments and diversifies capital market products. Transparency and governance will be tightened, and investor protection enhanced.
The P2SK Law also authorizes Danantara Indonesia to issue special bonds, known as Patriot Bonds and Merah Putih Bonds, to expand long‑term funding sources for national strategic projects and strengthen Danantara’s investment capacity.
“Danantara Indonesia also plans to issue global bonds worth USD 5 billion. These bonds have been rated Baa2 with a negative outlook by Moody’s,” Phintraco noted.
This issuance is expected to deepen the national capital structure and finance development programs without burdening the state budget.
Global stock markets remain influenced by developments in the Middle East conflict. On Thursday, oil prices fell by about 3 percent, triggered by reports that President Trump is reluctant to pursue a full‑scale war against Iran. The yield on 10‑year US Treasury bonds dropped to 4.47 percent amid the oil price correction. (Gusti Panji)
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