This is the Reason Why the Jakarta Composite Index Plummeted by 4.39% This Morning
The Jakarta Composite Index (JCI) plunged deeper, hitting the 5,348.95 level, or a drop of 245.82 points, representing a 4.39% decline during today’s trading, Monday (8/6/2026).
Massive selling occurred across almost all market sectors. A total of 606 stocks were recorded to have weakened, while only 57 stocks gained, and 296 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.
The JCI correction is inseparable from the Indonesian financial market, which continues to face dynamics ranging from war to investors closely monitoring domestic fiscal resilience.
Furthermore, over the weekend, 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. This has increased global uncertainty.
Iran’s Parliament Speaker, Mohammed Baqer Ghalibaf, accused the US maritime blockade and Israeli attacks in Lebanon of violating the agreement. He stated that US bases and Israeli assets in the region are now legitimate targets.
US President Donald Trump, having received reports on 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.
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.
This tension threatens fragile peace efforts. Iran demands an end to the war in Lebanon and the lifting of the US blockade, while Washington demands Tehran surrender its nuclear materials and cease nuclear weapons ambitions.
Domestically, Finance Minister 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 APBN deficit remains well-maintained, measured, and in line with the 2026 budget design. Budget financing is also managed prudently, efficiently, and flexibly in response to financial market dynamics.
The fiscal 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 the press conference, as quoted on Monday (8/6/2026).
The fiscal deficit remains a sharp focus for investors, particularly amidst war volatility which is driving 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 signifies that investors are returning to the US Dollar, which could trigger outflows from emerging markets like Indonesia. Consequently, the Rupiah remains under threat.
In the past week, the Rupiah plummeted to the level of Rp18,000/US$, and in today’s trading, it has even touched the 18,100 mark per US Dollar.