Moody’s Negative Outlook for Danantara Increases Pressure on Stock Market

Pressure in the domestic financial market shows no signs of easing. Amidst a decline in the Jakarta Composite Index (IHSG) of more than 4 per cent and the weakening of the Rupiah towards the Rp18,000 per US dollar level, market participants are also responding negatively to the negative outlook assigned to Danantara Investment Management by Moody’s Ratings.

Reza Priyambada, Director of Reliance Sekuritas, noted that this sentiment is affecting investor psychology. Based on his observations during the first trading session, market participants tend to reduce risk by temporarily exiting the market.

“From what I observed in the first session’s market movement, it appears that market participants are responding negatively to the news. This means that market participants can be said to be uncomfortable with the assessment and are choosing to exit the market for the time being,” Reza stated in a short message on Wednesday (3/6/2026).

According to Reza, investors who remain active in trading also tend to take short-term positions as an anticipatory measure in case the market weakens further.

“Market participants also seem to be inclined towards ‘hit and run’ strategies for those still engaging in short-term trading, as a precaution against the market falling even deeper,” he added.