JCI Plunges Over 2%, Extending Sharp Decline

The Jakarta Composite Index (JCI) slumped on Thursday (18/6/2026), extending the correction recorded in the previous day’s trading. Based on IDX Mobile data at 09:42 WIB, the JCI fell to 6,096.41, down 124 points or 2%, having briefly dropped more than 2% to 6,088.09. A total of 140 stocks rose, 460 stocks fell, and 122 stocks were unchanged. Transaction value reached Rp 6.13 trillion, with a trading volume of 7.12 billion shares changing hands 511,731 times. The most actively traded stocks included BBCA, BBRI, BMRI, TPIA and DSSA. Citing Refinitiv data, stocks weighing on the JCI’s performance included TLKM, BBCA, BBRI, BMRI and SMMA.

Domestic and global financial market movements are entering a crucial phase this week. Market participants are shifting their focus to several key macroeconomic agendas that could determine the direction of foreign capital flows and exchange rate stability. The Federal Reserve’s and Bank Indonesia’s interest rate decisions will be the main focus of the market today. The Federal Reserve maintained its benchmark interest rate at 3.50%-3.75% at the June FOMC meeting, but signalled strongly that further rate hikes remain possible this year as inflation stays well above the 2% target. In its official statement, the Fed noted that US economic activity continues to grow solidly. Fed Chair Kevin Warsh reaffirmed the central bank’s commitment to returning inflation to target, and the latest statement removed all forward guidance, marking a shift in approach under his leadership.

Domestically, the fundamental agenda commanding attention is the announcement of the final results of the Bank Indonesia Board of Governors meeting. A majority of market participants expect Bank Indonesia to raise its benchmark interest rate at this meeting, held on 17-18 June 2026, though the margin of expectation has narrowed. Of 14 institutions participating in a CNBC Indonesia poll, eight forecast a 25 basis point increase to 5.75%, while six expect the rate to be held at 5.50%, placing the median projection at 5.75%. After responding to Bank Indonesia’s monetary policy direction, the focus of global fund managers and domestic institutions will immediately shift to the MSCI Global Market Accessibility Review, scheduled for release early Friday morning (19/6/2026). This annual review carries massive implications as it evaluates the accessibility of capital markets across countries and the quality of their market infrastructure. For the Indonesian equity market, this announcement is always a crucial highlight. Any adjustment to market classification methodology, special treatment of equity instruments, or review of regulations concerning public shareholding limits or free float rules will structurally impact the portfolio composition of passive global funds. Such decisions could trigger large-scale investment position adjustments, potentially creating liquidity volatility and share price fluctuations for mega-cap stocks on the Indonesia Stock Exchange by the end of the week. In addition to the Accessibility Review, MSCI will also release its Annual Market Classification Review early on Wednesday (24/6/2026). Meanwhile, Asia-Pacific stock markets opened higher on Thursday, even as market participants digested the results of the latest Federal Reserve meeting. Futures contracts for US equities rose on Wednesday evening local time, with S&P 500 futures up 0.2%, Nasdaq 100 futures up 0.4%, and Dow Jones Industrial Average futures adding 73 points, or slightly above 0.1%. In Asia, South Korea’s Kospi index surged 0.89% to a new record high, with tech giant SK Hynix soaring 3.25% to an all-time high and Samsung Electronics rising 1.23%, though the small-cap Kosdaq index fell 0.5%. Japan’s market also posted an impressive performance, with the Nikkei 225 rising 1.35% to breach the 71,000 level for the first time in history, while the Topix index gained 1.27%. Australia’s benchmark S&P/ASX 200 was relatively flat. Meanwhile, Hang Seng futures were at 24,200, lower than the previous close of 24,312.16, indicating potential weakness at the opening.