JAKARTA — The Indonesia Stock Exchange (IDX) recorded mixed trading performance during the week of May 25—29, 2026. By the close of the week, the Composite Stock Price Index (IHSG) settled at 6,127, with the total market capitalization reaching IDR 10,729 trillion.
In its weekly summary, the IDX reported that the IHSG experienced a 0.56 percent decline throughout the week, sliding from the previous week’s close of 6,162.045 to 6,127.381. Trading activity also saw a contraction, with the average daily transaction frequency falling by 10.87 percent to 2.11 million trades, down from 2.37 million the prior week. Similarly, the average daily transaction volume dropped by 15.60 percent, declining to 30.95 billion shares from 36.67 billion.
Despite the dip in volume and frequency, the average daily transaction value grew by 30.37 percent, rising to IDR 28.38 trillion from IDR 21.77 trillion. Furthermore, the overall market capitalization for the exchange saw a modest gain of 0.88 percent, increasing from IDR 10,635 trillion to IDR 10,729 trillion. Meanwhile, foreign investors recorded a net sell of IDR 8.519 trillion for the week, bringing the total net sell by foreign investors for the year 2026 to IDR 53.971 trillion.
Beyond market movements, the IDX actively promoted governance and sustainability. On Tuesday, May 26, 2026, the exchange, alongside the Financial Services Authority (OJK) and the Indonesian Institute of Accountants (IAI), hosted a Strategic Leadership Dialogue at the IDX Main Hall. The forum, themed “Sustainability Disclosure Standards (SPK) in Building Trust in the Indonesian Capital Market,” aimed to align local corporate reporting with global International Financial Reporting Standards (IFRS) S1 and S2. Discussions emphasized the critical role of directors in integrating sustainability into business strategies, supported by the IDX’s ongoing enhancements to the SPE-IDXnet reporting system and the IDX Sustainability website.
The domestic market remains under significant pressure, with the IHSG down nearly 30 percent year-to-date from its opening level of 8,748 at the start of 2026. This prolonged volatility traces back to January 2026, when Morgan Stanley Capital International (MSCI) froze the rebalancing of Indonesian securities. The fallout from this period prompted leadership changes, including the resignation of then-IDX President Director Iman Rachman, alongside several high-ranking officials from the OJK, such as Board of Commissioners Chairman Mahendra Siregar and Capital Market Supervisor Executive Head Inarno Djajadi.
The market environment remained challenging throughout May 2026, as MSCI removed several Indonesian stocks from its index constituents. The OJK stated that these deletions were a direct consequence of the market integrity reforms initiated in February 2026 by the OJK and Self-Regulatory Organizations (SROs). Further pressure emerged when FTSE Russell announced the removal of four Indonesian stocks from the FTSE Global Equity Index Series (GEIS), effective June 22, 2026.
Global rating agencies have also raised concerns regarding government policies, such as the single-door export policy. S&P Global Ratings and Moody’s Ratings cautioned that such measures could dampen state revenue and disrupt the balance of payments. These policies are viewed as negative sentiments for the credit profiles of companies in the mining sector and may increase risks related to market distortion.
Despite these headwinds, the OJK remains optimistic that market conditions will improve through the ongoing reform movement. Key initiatives under this mandate include increasing the minimum free float requirement to 15 percent, the demutualization of the IDX, improving the transparency of Ultimate Beneficial Owners (UBO), and strengthening the role of domestic institutional investors to broaden the overall investor base.
Summary
The Indonesia Stock Exchange (IDX) faced significant volatility during the week of May 25–29, 2026, with the Composite Stock Price Index (IHSG) declining 0.56% to 6,127. While daily transaction values rose by 30.37% and total market capitalization increased to IDR 10,729 trillion, trading frequency and volume experienced double-digit contractions. Foreign investors continued their exit, recording a net sell of IDR 8.519 trillion for the week, contributing to a year-to-date total of IDR 53.971 trillion.
The domestic market remains under severe pressure, with the IHSG down nearly 30% year-to-date following index rebalancing issues involving MSCI and FTSE Russell, alongside leadership changes at the IDX and OJK. To address these challenges and improve market integrity, the OJK is implementing reforms, including increased free-float requirements and enhanced transparency standards. Despite negative outlooks from rating agencies regarding government export policies, the OJK maintains an optimistic stance on long-term market recovery through structural improvements.