JCI Plummets and Rupiah Drops: The Causes of Pressure on Indonesian Financial Markets

Selling pressure in the domestic stock market deepened during morning trading on Monday (18/05/2026). The Indonesia Composite Index (JCI) plummeted by 283.558 points, or 4.22 per cent, to the level of 6,439.761 as of 09:57 WIB. The JCI opened at 6,628.976 and briefly touched a high of 6,631.282.

The decline in the JCI occurred amidst a dominance of stocks trading in the red zone. A total of 663 stocks declined, 76 stocks strengthened, and 73 stocks remained stagnant. Market transaction value was observed to be high, with turnover reaching Rp 6.722 trillion from a trading volume of 12.634 billion shares.

Similar pressure was observed in the spot market, where the Rupiah exchange rate depreciated by 75 points, or 0.43 per cent, to the level of Rp 17,672 per US dollar. Currency and commodity analyst, Ibrahim Assuaibi, assessed that external factors remain the primary cause of pressure on the Rupiah exchange rate. The most highlighted factor is the increasing geopolitical tension in the Middle East, particularly regarding the Strait of Hormuz, which serves as a vital route for global oil trade. These events are considered to be adding to global uncertainty and triggering market concerns regarding the stability of global energy routes.

“The Strait of Hormuz issue remains a concern. Especially following the summit in China yesterday, where Iran seized a Chinese vessel. This creates its own set of tensions,” he said. On the other hand, the Israeli military conflict is also assessed to be further worsening the geopolitical situation.