Stocks Plunge to 2000s Era Valuations: SMGR and INDF Hit Hard
The Jakarta Composite Index (IHSG) recorded massive selling pressure during trading today (4/6/2026). The domestic stock market benchmark index closed down 5%, landing at 5,644.23. This position represents a sharp deterioration compared to the previous trading day’s close, which stood at 5,941.07. This continuous decline technically confirms that the IHSG has slumped and touched its lowest level since 1 December 2020.
This drop in aggregate market valuation reflects a return to extreme uncertainty previously only witnessed during the COVID-19 pandemic era. The conditions have depressed a series of large-capitalisation stocks, throwing them far from their fair valuations.
The aggressive fall in share prices on the regular market is a direct consequence of an accumulation of negative macroeconomic sentiment and heightened institutional caution. The impact of the lowered outlook from Danantara Investment Management the previous day continues to burden the risk appetite of fund managers. The pressure on the stock exchange runs parallel with a deepening depreciation of the Rupiah exchange rate. The domestic currency has now breached a new psychological barrier, sitting at IDR 18,000 per United States Dollar. This very significant currency weakening triggers rational concerns among market participants regarding the potential swelling of corporate operational burdens, particularly for issuers with foreign currency liabilities or a heavy dependence on imported raw materials.
The vulnerability level of the stock exchange is currently in a very crucial phase. This pressure occurs amid an absence of certainty, considering that the credit rating publication from S&P Global Ratings—whose negative rumours have already triggered a massive sell-off—has not yet been officially released. Furthermore, market volatility is also strongly driven by anticipatory investor behaviour ahead of two important agendas from MSCI. The global index provider is scheduled to publish its Market Accessibility Review on 19 June. That agenda will then be followed by the Classification Review announcement on 24 June. The risk accompanying a potential evaluation adjustment, whether remaining at Emerging Market or being downgraded to Frontier Market, directly pushes foreign investors to accelerate mitigation measures by drastically reducing their exposure to equity assets in the Indonesian capital market before the announcements are made.
The impact of this market panic looks highly destructive on the movement of blue-chip stocks. The data highlights issuers with a market capitalisation above IDR 5 trillion. Infrastructure sector issuers such as PT Semen Indonesia Tbk (SMGR) recorded the most dramatic valuation decline, where its share price plunged to 1,635, equivalent to its price position on 7 September 2005, or more than 25 years ago. A similar extreme correction was also experienced by PT Indocement Tunggal Prakarsa Tbk (INTP), which slumped to 4,210, returning its share valuation to the position of 10 March 2009, or 16 years ago. Other large issuers in the health, property, and telecommunication tower sectors, such as KLBF, BSDE, and TOWR, were also completely wiped out, touching price levels from 2010 to 2012. This mass movement confirms that the turbulence hitting the domestic market has thoroughly eroded the fundamental growth trend structure of issuers, forcing market participants to reformulate their risk management strategies.