Reasons Behind IHSG's Sudden 2% Drop This Afternoon

The Jakarta-based CNBC Indonesia report states that the Jakarta Composite Index (IHSG) slumped sharply ahead of the close of the first trading session on Tuesday, 19 May 2026. By 11:11 WIB IHSG had fallen 2% or 136.33 points to 6,462.91, with declines continuing to push the index to a low of 6,428.63. A total of 525 stocks fell, 183 rose, and 251 were flat. The value traded was relatively brisk at Rp 11.98 trillion, involving 19.56 billion shares across 1.4 million trades. The sharp correction extended the weakness from yesterday’s session, when IHSG fell more than 4% but managed to trim losses to close down 1.85%. Refinitiv data show that nearly all sectors were red with healthcare the exception; the raw materials sector slid the most, down 7.4%, amid a broad correction in shares of companies linked to Prajogo Pangestu. Chandra Asri (TPIA) dropped 15%, weighing on the index by 11.16 points, followed by Amman Mineral (AMMN) down 10.94 points, Mora Telematika (MORA) down 8.97 points, and Dian Swastatika Sentosa (DSSA) down 7.5 points. Three of these four firms were among those removed from the MSCI index. The biggest pressure on the IHSG since the end of the weekend came from stocks cut from MSCI Global Standard Index and MSCI Global Small Cap Index. Further pressure arose after FTSE, another global index provider, signalled the future of Indonesian stocks within its indices. In FTSE’s latest release titled “Index Treatment for the June 2026 Index Review” published on Wednesday 13 May 2026, FTSE indicated a hard stance toward potential removals of shares with high ownership concentration (HSC) in the Indonesia Stock Exchange (BEI). The update follows Indonesia’s market regulator’s efforts to increase transparency, including publishing the High Shareholding Concentration (HSC) list. The document states that if a company becomes subject to ownership concentration warnings from the exchange and the financial authorities, where the circulating shares are controlled by a small number of holders, the stock will be removed from the index at the next review. “To ensure the integrity and replicability of the index, FTSE Russell will remove affected securities at zero price in the June 2026 review, effective from market open on Monday, 22 June 2026,” the official FTSE release said. The zero-price policy is being introduced because FTSE assesses that HSC stock liquidity tends to deteriorate materially; institutional passive funds may struggle to find counterparties if forced to exit rapidly. The IHSG also faced pressure from a weakening rupiah, which breached a new psychological level. Refinitiv data show the rupiah weakening 0.34% to Rp17,700 per USD by 09:13 WIB. The decline persisted after it opened weaker; at the morning session, the rupiah traded at Rp17,650 per USD, down 0.06%. The rupiah’s slide occurred even as the US dollar index (DXY) weakened, down 0.11% at 99.094.