The Composite Stock Price Index (IHSG) experienced a significant 6.63 percent decline this week. On Monday, May 18, 2026, the IHSG was recorded at 6,599.24, before plummeting to 6,162.05 by Friday, May 22, 2026.
During Friday’s opening trading session, the IHSG briefly plunged to its lowest point this year, reaching 5,976.07. However, the index managed to stage a recovery, rebounding by 1.1 percent from its closing level of 6,094.94 recorded on Thursday, May 21, 2026.
Despite this week’s downturn in the IHSG, Finance Minister Purbaya Yudhi Sadewa expressed strong optimism for a rebound next week, citing improvements in Indonesia’s national economic fundamentals. “I think, looking at the technical indicators, it will pick up speed next week,” Purbaya stated at the State Palace Complex in Jakarta on Friday, May 22, 2026.
Purbaya reiterated his confidence that the IHSG will recover over time, especially as Indonesia’s economic fundamentals remain robust. He urged market participants not to be overly concerned about the current condition of the Indonesian stock market.
Jeffrey Hendrik, the acting President Director of the Indonesia Stock Exchange (IDX), acknowledged on Monday that market uncertainty in Indonesia remains quite high. However, he noted that the IHSG’s weakness early in the week was consistent with broader global market corrections observed across Asia during the extended holiday period.
Key drivers of this current uncertainty include fluctuations in commodity prices, varying exchange rates across different countries, and the unresolved conflict in the Middle East. “Therefore, we tirelessly remind investors to always pay attention to fundamentals, avoid panic, conduct thorough analysis, and strategize their investments according to their individual risk profiles,” Hendrik advised.
A significant contributing factor to the overall IHSG decline was also the implementation of stock adjustments or rebalancing by Morgan Stanley Capital International (MSCI). This sentiment persists after MSCI removed 6 Indonesian stocks from its Global Standard Index and 13 stocks from its Global Small Cap Index.
The stock market had already experienced a correction on May 19, preceding the announcement of a new State-Owned Enterprise (SOE)—later identified as PT Danantara Sumberdaya Indonesia—tasked with controlling natural resource commodity exports. The IHSG corrected from 6,599.24 to 6,370,68, marking a 3.46 percent drop by Wednesday, May 20, 2026.
Declining stock prices were prominently observed in the mining sector, encompassing both oil and gas and mineral resources. This trend was also evident in the palm oil plantation industry and other sectors.
Anastasya Lavenia Yudi contributed to this article.
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Summary
The Composite Stock Price Index (IHSG) experienced a significant 6.63 percent decline this week, plummeting from 6,599.24 to 6,162.05. A major factor in this downturn was Morgan Stanley Capital International (MSCI) implementing stock adjustments, which involved removing several Indonesian stocks from its indices. Broader market uncertainty, fluctuating commodity prices, varying exchange rates, and the ongoing Middle East conflict also contributed to the index’s weakness. Furthermore, a correction was observed after the announcement of a new State-Owned Enterprise tasked with controlling natural resource commodity exports.
Despite the decline, Finance Minister Purbaya Yudhi Sadewa expressed strong optimism for an IHSG rebound, attributing his confidence to Indonesia’s robust national economic fundamentals. Jeffrey Hendrik, acting President Director of the Indonesia Stock Exchange (IDX), acknowledged the high market uncertainty but noted the IHSG’s weakness was consistent with global market corrections. He advised investors to focus on fundamentals, avoid panic, conduct thorough analysis, and strategize their investments according to individual risk profiles. This emphasizes the importance of careful decision-making during volatile market conditions.