Reasons Behind the Sudden 2.5% Plunge in the JCI During the Second Session
The Jakarta Composite Index (JCI) suddenly plunged 179.4 points or -2.5% to the level of 6,994 at 3:33 PM WIB during trading today, Friday (8/5/2026).
The majority of stocks experienced corrections. There was significant selling pressure, evident from the transaction value exceeding Rp 30 trillion even before trading ended.
Commodity stocks recorded deep corrections, including mining contractors.
Quoting Refinitiv, Dian Swastatika Sentosa (DSSA) was the main drag with a weight of -17.19 points. Then Barito Renewables Energy (BREN) -12.91 points, Merdeka Copper Gold -12.33 points, Bumi Resources Minerals (BRMS) -7.5 points, and Amman Mineral (AMMN) -6.99 points.
The deep correction in commodity stocks, particularly nickel, aligns with the government’s plan to implement a new tax for the coal and nickel sectors on the ‘windfall’ profits of the industry. This tax is often referred to as the windfall profit tax.
The imposition of the windfall tax on the mining and nickel management sector will be applied alongside the implementation of export duties. Currently, the policy is still being discussed with the Ministry of Energy and Mineral Resources (ESDM).
Finance Minister Purbaya Yudhi Sadewa stated that the imposition of export duties plus windfall profit tax for nickel commodities is intended to compensate for the energy subsidies that the government has disbursed amid high fluctuations in global crude oil prices, due to conflicts in the Middle East.
Separately, the Ministry of National Development Planning (PPN)/Bappenas has set a series of tax policies to apply in 2027 to pursue a state revenue ratio of 11.82%-12.40% of GDP.
The state revenue ratio in 2027 consists of a tax revenue target of 10.02%-10.50% of GDP and Non-Tax State Revenue (PNBP) of 1.80%-1.89% of GDP.
In the 2026 Government Work Plan (RKP) document, it is revealed that efforts to achieve this ratio target will be pursued through modernisation of tax and PNBP administration, integration of data bases supported by digitalisation to prevent leaks and capture all economic activities (including the informal sector).
This includes the implementation of the windfall tax. “Strengthening supervision, simplification of regulations to reduce informality, measured and targeted implementation of windfall tax, and strengthening synergy between central and regional governments,” quoted from the 2027 RKP document, Friday (8/5/2026).
Additionally, the government is examining the implementation of a profit-sharing system similar to the oil and gas (migas) sector for the mineral and coal mining (minerba) industry. This is done so that the management of natural resources is deemed to provide greater benefits for the state and public welfare.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia explained that the government wants to ensure that both old and new mines can provide maximum contribution to state revenue. One approach being considered is adopting a cooperation pattern similar to the migas sector.
In the migas sector, there are at least schemes of cost recovery and gross split used in cooperation contracts between the government and private parties. This model is considered a reference for implementation in the minerba sector.
From abroad, tensions have resurfaced in the Middle East between the United States (US) and Iran, Thursday-Friday (8/5/2026). In the latest update, both countries engaged in exchanges of fire in the Strait of Hormuz.
Attacks were also reported in the skies over Tehran. On the other hand, the United Arab Emirates (UAE) also reported drone and missile attacks. An announcement of a meeting between US President Donald Trump and President Xi Jinping was also presented.
Along with this, stock exchanges in the region also entered the red zone. The ASX200 fell the deepest, namely -1.51%, HSI -0.87%, and Nikkei -0.19%.