Sell-Off Hits Market, JCI Drops More Than 4%
Selling pressure in the domestic stock market has become unstoppable. The Indonesia Composite Index (JCI) crashed by more than 4% during this morning’s trading, extending a sharp correction trend that has persisted since the market opening.
Based on IDX Mobile data at approximately 09:10 WIB, the JCI was recorded at the 5,348.95 level, dropping 2pend 245.82 points or 4.39%. Intraday, the index even touched a low of 5,346.91.
Massive selling occurred across almost all sectors of the market. A total of 606 stocks were recorded to have weakened, while only 57 stocks gained, and 296 stocks remained stagnant. Transaction value reached Rp2.85 trillion, with trading volume hitting 3.77 billion shares and transaction frequency reaching 279,000 times.
A correction of more than 4% in just about 10 minutes of trading demonstrates highly aggressive selling pressure and indicates that panic continues to dominate market sentiment this morning.
Indonesia’s financial markets continue to face dynamics ranging from war to investors closely monitoring domestic fiscal resilience. Iran reportedly launched missiles at Israel on Sunday (7/6/2026), the first time since the ceasefire between Tehran and Washington came into effect last April.
Iranian Parliament Speaker Mohammed Baqer Ghalibaf accused the US naval blockade and Israeli attacks in Lebanon of violating the agreement. According to him, US bases and Israeli assets in the region are now legitimate targets.
US President Donald Trump, who has received reports regarding the attack, stated that Iran’s actions would not assist the negotiation process. Trump is also said to be contacting Israeli Prime Minister Benjamin Netanyahu to urge him not to retaliate against Iran’s attack.
The Islamic Revolutionary Guard Corps (IRGC) emphasised that the ceasefire holds on the condition that conflict also ceases on all fronts, including Lebanon. Iran warned that a broader response would follow if attacks recur.
These tensions threaten fragile peace efforts. Iran demands an end to the war in Lebanon and the lifting of the US blockade, while Washington requests Tehran surrender nuclear materials and cease nuclear weapons ambitions.
Domestically, Minister of Finance Purbaya Yudhi Sadewa presented the realisation of the State Budget (APBN) up to the end of May 2026 during the APBN KiTA Press Conference held on Friday (5/6/2026).
Amid global uncertainty and geopolitical tensions in the Middle East, the Finance Minister emphasised that Indonesia’s economic foundation remains solid, with APBN realisation showing a very positive trend.
The current APBN deficit remains well-maintained, measured, and in accordance with the 2026 APBN design. Budget financing is also managed prudently, efficiently, and flexibly in response to financial market dynamics.
The budget deficit increased slightly to Rp180.4 trillion or 0.70% of GDP. This figure is slightly higher than the Rp164.4 trillion or 0.64% of GDP recorded at the end of April 2026.
“The realisation of the APBN up to May 2026 continues to show positive results,” said Purbaya during a press conference, as quoted on Monday (8/6/2026).
Fiscal deficits remain a sharp focus for investors, particularly amidst war volatility which drives up energy prices and derivatives, expected to increase costs.
Meanwhile, the US Dollar Index rose back to the 100.069 level, its highest since late March 2026. The strengthening dollar index signals that investors are returning to US dollars, which could trigger outflows from emerging markets, such as Indonesia. Consequently, the Rupiah remains under threat.
In the past week, the Rupiah plummeted to the level of Rp18,000/US$1.
Deputy Governor of Bank Indonesia, Destry Damayanti, noted that the exchange rate weakness is still influenced by the escalating Middle East geopolitical tensions, which hinder peace prospects, drive oil prices higher, and increase the risk of global inflation and capital outflows from developing nations.
“Additionally, domestic (dollar) demand remains quite high in line with dividend repatriation patterns and external debt payments,” said Destry in a short message to CNBC Indonesia, as quoted on Monday (8/6/2026).