JAKARTA — The Indonesian stock market is facing mounting pressure as foreign capital continues to exit, with outflows from the Jakarta Composite Index (JCI) reaching 55.37 trillion rupiah by June 2, 2026. This significant capital flight, combined with a downturn in large-cap conglomerate stocks, has deepened the index’s recent correction.
During Wednesday’s trading session on June 3, 2026, the JCI experienced a sharp decline of more than 4 percent. This sell-off was primarily driven by the weakening of the rupiah, which edged closer to the critical 18,000 per US dollar threshold, alongside the persistent surge in foreign capital outflows.
By 11:10 AM WIB, the JCI had plummeted 255.71 points, or 4.13 percent, to settle at 5,939.71. At the same time, the rupiah’s exchange rate was hovering near 17,928 per US dollar, reflecting the broader volatility affecting the domestic financial landscape.
MNC Sekuritas analyst Herditya Wicaksana identified the depreciating rupiah as the primary sentiment weighing on the domestic stock market. He noted that this instability is heightening investor concerns regarding the overall outlook for the national economy and domestic financial assets.
“We anticipate that the current correction in the JCI is largely triggered by the weakening of the rupiah against the US dollar, which has now reached 17,928 per dollar,” Herditya explained.
Adding to the market’s volatility, Herditya observed that several conglomerate stocks, which had surged sharply over the previous two days—some even hitting their upper auto-rejection (ARA) limits—have since reversed course. This rapid shift from significant gains to sudden losses has further exacerbated the pressure on the JCI.
“The market is also being dragged down by these same conglomerate issuers that had experienced such a significant upward trend in the last two days,” he added.
From a technical perspective, Herditya maintains a cautious outlook, noting that the window for a near-term market recovery remains narrow. He concludes that the JCI is currently locked in a downward trend and has yet to display any definitive technical signals indicating a robust reversal.
Summary
The Jakarta Composite Index (JCI) experienced a sharp decline of 4.13 percent on June 3, 2026, falling to 5,939.71 points. This significant drop was driven by consistent foreign capital outflows reaching 55.37 trillion rupiah and the weakening of the Indonesian rupiah, which approached the critical 18,000 level against the US dollar. The correction was further intensified by a reversal in the performance of several large-cap conglomerate stocks that had previously seen rapid gains.
MNC Sekuritas analyst Herditya Wicaksana identifies currency instability as the primary factor dampening investor confidence in domestic financial assets. Given the current lack of technical signals for a reversal, analysts maintain a cautious outlook. The market is expected to remain under pressure as the JCI continues to follow a persistent downward trend.