JAKARTA — The Jakarta Composite Index (JCI) has dipped below the psychological level of 7,000, weighed down by persistent global market pressures. Heightened geopolitical uncertainty has prompted investors to adopt a cautious stance, particularly toward emerging markets like Indonesia.
Eko Listiyanto, Director of Big Data at the Institute for Development of Economics and Finance (Indef), explained that the current downward pressure on the JCI is inseparable from ongoing global volatility. This environment has led market participants to delay business expansion and shift their focus toward risk mitigation.
“This is directly linked to the global fallout from geopolitical tensions, which have yet to show signs of cooling down,” Eko stated during a discussion titled “2 Months of the Israel-US vs. Iran War: Assessing the Economic Impact!” in Jakarta on Thursday (April 30, 2026).
Furthermore, Eko highlighted that the United Arab Emirates’ (UAE) recent departure from OPEC has introduced a new layer of uncertainty into the global energy market. He noted that this shift significantly alters investor risk perception regarding both the global and domestic economy. “The UAE’s exit from OPEC creates a new dynamic within the context of geopolitics and energy pricing,” he added.
According to Eko, the weakening of both the JCI and the Indonesian rupiah is currently driven by negative sentiment that outweighs the nation’s solid economic fundamentals. Consequently, he argued that offering empty optimism is an insufficient response to the market turmoil.
“Attempting to counter negative sentiment with mere rhetoric is simply not the right approach,” Eko emphasized. Instead, he believes the most effective strategy is to demonstrate the resilience of Indonesia’s economic fundamentals through concrete, measurable policies. He acknowledged that the government’s current efforts, such as strengthening energy security, are steps in the right direction, provided they are backed by consistent implementation.
“The best way to combat market sentiment during times like these is not through positive narratives, but by showcasing facts and solid fundamentals,” he continued.
Eko also pointed to the importance of executing national priority programs effectively. He warned that poor implementation of these programs could exacerbate negative market sentiment. “If these programs are not executed properly, they indirectly become a burden, fueling further negative sentiment,” he cautioned.
Ultimately, Eko identified the improvement of policy governance as the key to restoring investor confidence and maintaining long-term economic stability. He remains confident that if these large-scale programs are refined and implemented accurately, the current undervalued state of the rupiah and the JCI will gradually recover.
Summary
The Jakarta Composite Index (JCI) has fallen below the 7,000 level due to global market pressures, particularly ongoing geopolitical tensions and the uncertainty surrounding the UAE’s exit from OPEC. Eko Listiyanto of Indef notes that these factors have forced investors to prioritize risk mitigation over business expansion. Despite Indonesia’s solid economic fundamentals, negative market sentiment currently outweighs the nation’s domestic stability.
To restore investor confidence, experts suggest shifting focus from mere rhetoric to the effective implementation of concrete national policies. Improving policy governance and ensuring the success of priority programs are deemed essential to countering market volatility. Ultimately, consistent and transparent execution of these initiatives is expected to help the rupiah and the JCI recover from their current undervalued state.