JAKARTA — The Indonesian stock market experienced a significant downturn this week, as shares of major conglomerates tumbled, pulling the Jakarta Composite Index (IHSG) below the critical psychological level of 8,000.
According to data from the Indonesia Stock Exchange (IDX), the composite index concluded Friday’s trading session (October 17, 2025) with a notable 2.57% contraction, settling at 7,915.65. The market breadth clearly indicated widespread weakness, with a mere 116 stocks recording gains against a stark 598 that depreciated, while 94 remained stagnant.
This pronounced dip in the IHSG was primarily attributed to the widespread depreciation of Indonesia’s conglomerate stocks. Shares affiliated with business magnate Prajogo Pangestu, for instance, experienced steep declines across the board, prominently featuring among the market’s top losers for the day.
Delving into the specifics, PT Barito Pacific Tbk. (BRPT) saw its shares fall by 7.12%, while PT Chandra Daya Investasi Tbk. (CDIA) plummeted by 8.72%. Further contributing to the slump were PT Petrindo Jaya Kreasi Tbk. (CUAN) with a 9.66% drop, PT Petrosea Tbk. (PTRO) which weakened by 5%, and PT Barito Renewables Energy Tbk. (BREN) experiencing a 5.1% correction.
The selling pressure wasn’t limited to Prajogo Pangestu’s ventures; shares of PT Solusi Sinergi Digital Tbk. (WIFI), an issuer linked to Hashim Djojohadikusumo, crashed by a substantial 14.51%. Similarly, Lippo Group stocks, represented by PT Multipolar Technology Tbk. (MLPT), contracted by an alarming 15%.
Arifin, an analyst at Reliance Sekuritas Indonesia, offered insights into the market’s behavior, explaining that most conglomerate stocks had previously experienced year-to-date (YtD) surges exceeding 30%. Such rapid appreciation in a short period inherently created significant room for a stock market correction, making the recent downturn almost inevitable.
“The basic logic is straightforward,” Arifin stated, as quoted on Saturday (October 18, 2025). “When a stock experiences an overly rapid ascent, a corresponding swift decline becomes highly probable, especially if not underpinned by robust fundamental conditions.”
He clarified, however, that this does not imply a lack of strong fundamentals across all conglomerate stocks. Rather, the excessively aggressive price movements witnessed in a compressed timeframe simply heightened the market’s sensitivity to subsequent selling pressure.
Despite the immediate downturn, Arifin viewed this weakening as temporary, presenting a prime opportunity for investors to accumulate fundamentally strong stocks. He underscored that the overall outlook for the Indonesian stock market remains positive. “Even in the event of a price decline,” he advised, “this represents an excellent chance to acquire high-quality, fundamentally sound stocks.”
Adding another layer to the market’s woes, Liza Camelia Suryanata, Head of Research at Kiwoom Sekuritas, highlighted that the pressure on the IHSG was exacerbated by escalating concerns over a potential US credit crisis. This fear stemmed from a notable surge in corporate defaults in the United States, citing examples such as First Brands, Tricolor Holdings, and Zions Bancorporation.
This negative sentiment quickly cascaded, triggering synchronous corrections across major Asian and European equity markets. However, the IHSG, as the composite index, bore the brunt of the impact, largely due to the comparatively shallow domestic market liquidity in Indonesia, which amplified the selling pressure.
“Fears of a domino effect reverberating through the financial sector prompted global investors to collectively divest from risky assets,” Liza explained. She further noted, “The surge in gold prices to US$4,300 serves as a compelling indicator that the equity market is indeed entering a turbulent phase.”
Beyond these external pressures, Kiwoom also highlighted the emergence of a domestic market rumor concerning a purported government policy. This unconfirmed policy suggested a desire to observe the “true IHSG” — an index uninfluenced by the traditional intervention or dominance of big-cap stocks.
This rumor alone triggered significant sell-offs in several prominent big-cap stocks, including BREN, CDIA, DSSA, DCII, TPIA, BRPT, and CUAN. Consequently, the intensified selling pressure unveiled the market’s authentic dynamics when these temporary support mechanisms were withdrawn.
“Today’s market weakening,” Liza concluded, “serves as a stark illustration of the market’s ‘real face’ once temporary support systems are disengaged.”
Disclaimer: This article is not intended as an invitation to buy or sell stocks. All investment decisions rest entirely with the reader. Bisnis.com bears no responsibility for any losses or gains that may arise from readers’ investment choices.
Summary
The Jakarta Composite Index (IHSG) experienced a significant downturn on October 17, 2025, falling below 8,000 due to widespread depreciation in major Indonesian conglomerate stocks. Shares linked to Prajogo Pangestu, Hashim Djojohadikusumo, and the Lippo Group suffered substantial declines. An analyst attributed this to prior rapid year-to-date surges in these stocks, creating an environment ripe for correction, especially where not fully backed by robust fundamentals.
Further exacerbating the market’s decline were escalating fears of a US credit crisis and a domestic rumor concerning a government policy to observe an IHSG uninfluenced by big-cap stocks. These factors intensified selling pressure, amplified by Indonesia’s shallow domestic market liquidity, leading to significant sell-offs in prominent big-cap stocks. Despite the immediate weakening, the overall outlook for the Indonesian stock market remains positive, presenting opportunities for accumulating fundamentally strong stocks.