Flooring Guide by Cinvex – , JAKARTA – The Jakarta Composite Index (IHSG) experienced a significant downturn in weekend trading on Friday, August 29, 2025. Concerns are mounting that the index’s weakness could extend into the coming week, fueled by intensifying demonstrations across the capital.
According to data from the Indonesia Stock Exchange (BEI), the IHSG plummeted by 1.53% to close at 7,830.49 on Friday, August 29, 2025. Despite this recent drop, the index remains in positive territory year-to-date (YTD), showing a robust 10.63% gain since the beginning of 2025’s trading session.
Indonesia’s stock market also recorded a substantial net sell by foreign investors, amounting to Rp1.12 trillion during Friday’s trading. This brings the total foreign net sell in the Indonesian stock market to a staggering Rp50.94 trillion YTD.
Related: BEI Invites Journalists Amidst IHSG Collapse and Chaotic Protests, What’s the Discussion?
The sharp decline in the Indonesian stock market coincides with an escalation of protests. Demonstrations by laborers and the general public in Jakarta on Thursday, August 28, 2025, continued late into the night. Tragically, a motorcycle taxi (ojol) driver lost his life after being run over by police using an armored vehicle.
This incident ignited widespread public outrage, particularly among fellow ojol drivers. By the early hours of Friday, August 29, 2025, hundreds of people had gathered at the Mobile Brigade Corps (Mako Brimob) headquarters in Kwitang, Jakarta.
Related: BBCA to TLKM Among Top Laggards, Here are the 10 Stocks Pressuring the IHSG This Week
Public anger further intensified, leading to the looting of several Members of Parliament’s homes and even the residence of Finance Minister Sri Mulyani.
M. Nafan Aji Gusta, Senior Market Analyst at Mirae Asset Sekuritas, noted that regardless of the current domestic political turmoil, the IHSG’s historical performance in September over the past five years has, on average, been bearish.
Related: IHSG Weekly Rally Marked by New ATH Record, PGUN to TEBE Among Top Gainers
“Currently, if the IHSG consistently trades below 7,750, the potential for a bearish consolidation phase is wide open,” Nafan told Bisnis on Sunday, August 31, 2025.
He added that the ongoing political instability is likely to impact the IHSG. However, Nafan believes that the BEI and the Financial Services Authority (OJK) should have mitigation measures in place, such as implementing a trading halt in the event of panic selling.
“The OJK also plays a crucial role in strengthening Self-Regulatory Organizations (SROs) to perform their functions, especially amid an unsupportive political and security climate,” Nafan emphasized.
Market observer Ibrahim Assuaibi stated that the current political climate is heating up, with the government reportedly instructing the TNI (Indonesian Armed Forces) and Polri (Indonesian National Police) to push back anarchic protesters.
“The potential for further protests in September will intensify the political situation, impacting Indonesia’s economy. Under such conditions, market players will become apathetic,” Ibrahim remarked.
He anticipates the IHSG will continue its weakening trend in the upcoming week, predicting a maximum decline of 5%.
Previously, BEI Development Director Jeffrey Hendrik asserted that the fundamentals of the Indonesian capital market remain solid.
He also stated that BEI has no plans to adjust regulations in response to current market dynamics. According to Hendrik, all aspects of exchange supervision and operations are still proceeding as planned.
Most importantly, Jeffrey stressed, investors must maintain a rational approach when making investment decisions to prevent short-term volatility from triggering panic.
Disclaimer: This news article is not intended as an invitation to buy or sell shares. Investment decisions are solely at the discretion of the reader. Bisnis.com is not responsible for any losses or gains arising from the reader’s investment decisions.
Summary
The Jakarta Composite Index (IHSG) fell 1.53% to 7,830.49 on Friday, August 29, 2025, driven by intensifying public demonstrations and a substantial foreign net sell of Rp1.12 trillion. The protests escalated following a tragic incident involving a motorcycle taxi driver, leading to widespread outrage and even the looting of officials’ homes. Concerns are now mounting that this weakness could extend into the coming week.
Market analysts anticipate further weakening for the IHSG, citing historical bearish trends for September and the impact of political instability. They suggest the BEI and OJK should have mitigation measures, such as trading halts, in place. However, the BEI maintains that capital market fundamentals are solid, with no plans to adjust regulations, urging investors to remain rational.