JCI Plummets as Foreign Investors Withdraw Rp 51 Trillion

The Indonesia Composite Index (JCI) recorded massive selling pressure at the opening of the second trading session today, 3 June 2026. The domestic benchmark index weakened significantly by 5.55%, landing at the 5,851.28 level. This position has breached psychological boundaries and technically confirms that the index has officially returned to the price range seen during the COVID-19 pandemic era. Historically, this level sits below the previous low of 5,860.54 recorded on 31 May 202le.

The decline in the stock index has proceeded in tandem with the continuous depreciation of the Rupiah, which showed little resistance. By 12:00 WIB, the Rupiah was observed touching the level of Rp17,945 per US Dollar. This weakness provides a strong indication of high demand for foreign exchange amidst peaking market uncertainty.

The negative movement in both the stock and money markets was directly triggered by both domestic and international sentiments. The primary catalyst for today’s aggressive selling was the circulation of rumours regarding an S&P Global Ratings report. There is speculation among market participants that S&P will release unfavourable projections regarding Indonesia’s economic stability for the June period. These rumours were swiftly responded to by both institutional and foreign investors with high levels of caution, resulting in portfolio adjustments and reduced exposure to domestic risky instruments.

At the close of the first trading session, a foreign net outflow of Rp 525.4 billion was recorded. Today’s decline was quite sharp, especially considering the significant drop in the Rupiah, which can be interpreted as a lack of confidence from foreign investors in domestic stocks. Another weighing sentiment originated from the international rating agency Moody’s, which officially downgraded Danantara Investment Management to Baa2 with a negative outlook. This rating adjustment for the national strategic fund management institution adds uncertainty regarding investment flow prospects and the credibility of long-term fund management.

This pressure is further exacerbated by the depreciation of the Rupiah to Rp17,945 per US Dollar, where the market anticipates potential increases in operational costs for issuers with foreign currency debt exposure. This series of negative catalysts is clearly reflected in the movement of foreign capital flows on the Indonesia Stock Exchange. Structured fundamental turbulence has driven a shift in foreign investor risk preferences, leading to sustained asset divestment. Based on trading recapitulation data since the beginning of 2026, foreign investors have been dominant in aggressive net selling; year-to-date, they have recorded a net outflow of Rp 54.84 trillion up to the close of the first trading session today. The peak of foreign capital exit occurred during several crucial moments, notably on 26 March 2026, with net selling exceeding Rp 20.71 trillion. Towards the end of May and early June, this distribution trend has not subsided. On 29 May 2026, the market recorded capital outflows of Rp 8.52 trillion due to the final day of MSCI rebalancing, followed by further selling on 2 June 2026 worth Rp 1.39 trillion. The outflow of foreign funds from the domestic capital market serves as a strong indicator of the market’s weakening resilience before the JCI hit its critical level today.