The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) closed weaker on Wednesday afternoon, primarily pulled down by basic materials stocks.
The JCI concluded trading down 52.18 points, or 0.82 percent, settling at 6,318.50. Concurrently, the LQ45 index, comprising 45 blue-chip stocks, also experienced a decline, dropping 4.14 points or 0.65 percent to 630.68.
“The JCI closed lower in Wednesday’s trading session after experiencing fluctuating movements throughout the day,” explained Ratna Lim, Head of Research at Phintraco Sekuritas, in her market analysis issued in Jakarta on Wednesday, May 20, 2026, as reported by Antara.
Opening with a decline, the Indonesian stock market index remained firmly in negative territory through the close of the first trading session. The bearish sentiment persisted into the second session, keeping the JCI in the red zone until the final bell.
A review of the IDX-IC Sectoral Index revealed that nine sectors weakened significantly. The basic materials sector recorded the steepest decline, plunging 4.60 percent. This was closely followed by the transportation and logistics sector, which fell 4.34 percent, and the energy sector, which saw a 2.63 percent drop.
Among individual stocks, the largest gains were observed in LCKM, SURE, APIC, INTD, and MORA. Conversely, the stocks experiencing the most significant losses included RELI, TPIA, WBSA, ASPR, and SMMT.
Overall trading activity for the day was robust, with 2,476,561 transactions recorded. A substantial volume of 41.12 billion shares changed hands, totaling a value of Rp 22.35 trillion. Market breadth indicated widespread selling pressure, with 208 stocks advancing, 483 declining, and 126 remaining unchanged.
The downturn in the Indonesian market mirrored broader trends across regional Asian stock markets this afternoon. The Nikkei index in Japan fell 808.59 points or 1.34 percent to 59,742.00, while China’s Shanghai index dipped 7.35 points or 0.18 percent to 4,162.18. Hong Kong’s Hang Seng index also weakened by 146.73 points or 0.57 percent to 25,651.12, and Singapore’s Straits Times index declined 26.54 points or 0.52 percent to 5,045.80.
Domestically, Ratna noted that market participants were reacting to President Prabowo Subianto’s address during the DPR Plenary Session. In his speech, the President presented the Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF) for the 2027 State Budget Draft, outlining the government’s economic direction.
Furthermore, the President announced the government’s intention to mandate the export of natural resource commodities exclusively through state-owned enterprises (BUMN) designated as sole exporters, a move aimed at enhancing state control and revenue from key resources.
During the same address, President Prabowo also instructed the Association of State-Owned Banks (Himbara) to lower credit interest rates for small businesses, signaling a focus on supporting the grassroots economy.
Adding to the market’s dynamics, Bank Indonesia (BI) raised its benchmark BI Rate by 50 basis points (bps) to 5.25 percent during its May 2026 Board of Governors Meeting (RDG). This increase surpassed the consensus market expectation of 5 percent. The BI Rate hike subsequently bolstered the Rupiah’s exchange rate, leading to a 0.29 percent strengthening against the US dollar, with the currency trading at Rp 17,654 per dollar.
Editor’s Choice: The 2027 Economic Direction in Prabowo’s Speech to the DPR
Summary
The Jakarta Composite Index (JCI) dropped by 0.82 percent to close at 6,318.50 on Wednesday, largely driven by significant losses in the basic materials, transportation, and energy sectors. This bearish trend reflected broader declines across major Asian markets, including those in Japan, China, Hong Kong, and Singapore. Trading activity remained high, with 41.12 billion shares traded and widespread selling pressure noted across the exchange.
Market sentiment was influenced by President Prabowo Subianto’s policy address, which detailed plans for state-controlled commodity exports and lower interest rates for small businesses. Additionally, Bank Indonesia unexpectedly raised its benchmark rate by 50 basis points to 5.25 percent, a move that successfully strengthened the Rupiah against the US dollar. These domestic policy shifts and monetary adjustments played a critical role in the day’s market performance.