JAKARTA – The Indonesian stock market experienced a significant downturn on Thursday, May 21, 2026, as the Jakarta Composite Index (IHSG) plunged by 218.36 points, or 3.46 percent, settling at 6,100.14 by 2:00 PM Western Indonesian Time (WIB). This sharp decline mirrored a broader market weakness, with the benchmark index for 45 blue-chip stocks, the LQ45, also falling by 13.78 points, or 2.18 percent, to reach 616.90.
Arjun Ajnawi, a Research Analyst at Infovesta Kapital Advisori, shed light on the primary domestic factor contributing to this market turbulence: Bank Indonesia’s (BI) decision to increase the BI-Rate by an unexpected 50 basis points (bps). This move pushed the key interest rate to 5.25 percent, a figure that significantly surpassed market expectations which had anticipated a more modest 25 bps hike. Arjun explained that market participants were still ‘pricing-in’ the ramifications of this unanticipated policy shift, causing widespread investor unease.
Adding to the bearish sentiment was a new government policy concerning the governance of Natural Resources (SDA) commodity exports. This regulation mandates that strategic commodity exports must be channeled exclusively through a single state-owned enterprise (BUMN), with initial implementation targeted between June 1 and August 31, 2026. Arjun highlighted that this substantial overhaul of the export process for key industries, particularly those involved in commodities like palm oil and coal, created considerable volatility and uncertainty across the market.
The day’s trading activity underscored the pervasive selling pressure across the Indonesian stock market. A total of 1,557,598 transactions were recorded, involving 25.09 billion shares with a substantial trading value of Rp 12.16 trillion. The market breadth clearly indicated widespread losses, as only 91 stocks advanced, while a staggering 652 stocks declined, and 72 remained unchanged.
The repercussions of these sentiments were felt across all sectors. According to the IDX-IC Sectoral Index, all eleven sectors recorded losses, with the raw materials sector experiencing the deepest dive, plummeting by 6.78 percent. This was closely followed by the energy sector, which dropped by 5.90 percent, and the non-primary consumer goods sector, seeing a significant fall of 4.91 percent.
Despite the widespread declines, a few stocks managed to post gains, with the largest increases observed in SOTS, DIVA, BOBA, KOBX, and ALKA. Conversely, the stocks that suffered the most significant losses included BUKK, LCKM, KDTN, PIPA, and LAND, reflecting the intense selling pressure that characterized the trading session.
Summary
The Jakarta Composite Index (IHSG) experienced a significant downturn on May 21, 2026, plunging by 3.46% to 6,100.14, with the LQ45 index also declining. This sharp fall was primarily attributed to Bank Indonesia’s unexpected decision to raise the BI-Rate by 50 basis points to 5.25%, a move that surpassed market expectations and triggered widespread investor unease.
Adding to the market turbulence was a new government policy mandating that strategic commodity exports, including palm oil and coal, must be channeled through a single state-owned enterprise starting June 1, 2026. This regulation introduced considerable volatility and uncertainty across the market, leading to widespread selling pressure. As a result, all eleven IDX-IC sectoral indexes recorded losses, with the raw materials, energy, and non-primary consumer goods sectors experiencing the most significant declines.