JAKARTA — The Indonesian stock market is facing significant downward pressure, as foreign capital outflows from the Jakarta Composite Index (IHSG/JCI) reached a staggering Rp55.37 trillion by June 2, 2026. This massive exodus, compounded by the weakening of major conglomerate stocks, has significantly deepened the index’s recent correction.
Market turbulence intensified during Wednesday’s trading session (June 3, 2026), with the JCI plummeting by more than 4 percent by midday. The market decline is primarily driven by the depreciation of the Indonesian Rupiah, which has neared the critical Rp18,000 per US dollar threshold, alongside persistent capital flight.
As of 11:10 WIB, the JCI had tumbled 255.71 points, or 4.13 percent, to settle at the 5,939.71 level. During the same period, the exchange rate of the Rupiah stood at approximately Rp17,928 against the US dollar.
MNC Sekuritas analyst Herditya Wicaksana identified the weakening Rupiah as the primary headwind currently burdening the domestic stock market. According to Herditya, this volatility has stoked investor anxiety regarding the country’s economic outlook and the stability of local financial assets.
“We anticipate that the current correction in the JCI is largely fueled by the weakening of the Rupiah against the US dollar, which has now touched Rp17,928 per dollar,” Herditya explained.
Herditya also noted that the market’s current struggle is linked to a reversal in momentum for major conglomerate stocks. Many of these entities had experienced sharp rallies over the previous two days—some even hitting the Auto Reject Atas (ARA) limit—but this surge proved unsustainable and ultimately pressured the broader index when the profit-taking began.
“On the other hand, the JCI’s movement is being weighed down by these conglomerate issuers that saw significant gains over the past two days, including hitting the ARA limit, before shifting to downward pressure,” he added.
From a technical perspective, Herditya observes limited room for an immediate market recovery. He maintains that the JCI remains entrenched in a bearish trend and has yet to signal a strong, reliable reversal.
Summary
The Jakarta Composite Index (JCI) experienced a sharp decline of over 4 percent, falling to the 5,939.71 level on June 3, 2026. This downturn is primarily attributed to a massive foreign capital outflow totaling Rp55.37 trillion and the significant depreciation of the Indonesian Rupiah, which has neared the Rp18,000 per US dollar threshold.
Analysts at MNC Sekuritas point to investor anxiety over economic stability and a reversal in momentum for major conglomerate stocks as key drivers of the market’s weakness. Given the bearish technical trend, experts warn that the JCI may face continued pressure with limited signs of an immediate recovery.