Indonesia’s stock market experienced a notable decline on Thursday, with the Jakarta Composite Index (JCI) falling by 1.51% to 5,247 points. The drop came despite Bank Indonesia’s efforts to boost liquidity and stabilize the market amid ongoing global economic uncertainties.
The JCI’s movement was characterized by fluctuations between 5,185 and 5,350 during early trading hours. A total of approximately 1.22 billion shares changed hands across 76,140 transactions, amounting to Rp 582.44 billion in total trading value. The market saw a broad-based decline with 519 stocks losing value, 54 gaining, and 106 remaining unchanged.
In a bid to support the financial system, Bank Indonesia maintained its benchmark interest rate at 5.75% and the lending facility rate at 6.5%. The central bank also raised the deposit facility rate by 25 basis points to 5%. Additionally, it announced plans to reduce the average reserve requirement for conventional commercial banks from 9% to 7% in two stages. This change is set to take effect on November 1, 2026, with a further reduction on December 1.
Despite the domestic challenges, Indonesian stocks attracted some international investor interest following a speech by President Prabowo Subianto. The iShares MSCI Indonesia ETF, which is US-listed, saw an increase of around 2%. However, market analysts warned that this uptick does not necessarily indicate a long-term recovery.
Broader global economic concerns continued to exert pressure on investor sentiment. Persistent inflation and uncertainty over future market conditions remain at the forefront of investor concerns. Other Asian markets mirrored this sentiment, with indices in Japan, South Korea, Hong Kong, and Shanghai also experiencing declines.