The Jakarta Composite Index (JCI) opened in the red during Friday’s trading session (May 22). According to Stockbit data at 9:02 AM Western Indonesian Time (WIB), the index plummeted 2.02 percent, shedding 122 points to reach the 5,972 level. Initial transaction data showed a volume of 909.69 million shares, with a total turnover of Rp 489.02 billion across 63,920 transactions.
Teguh Hidayat, a capital market observer and Director of Avere Investama, noted that the psychological threshold between 6,000 and 5,000 is currently the primary focus for market participants. “The 6,000 to 5,000 range is a major psychological barrier. Regardless of positive or negative sentiment, I believe the 6,000 level was a critical support point,” Teguh told kumparan.
Teguh cautioned that a short-term rebound for the JCI remains challenging, largely due to ongoing pressure on major conglomerate stocks that have historically anchored the index. He expressed skepticism regarding a swift market recovery, noting that heavyweights such as BREN, DSSA, and TPIA face continued downward pressure following their removal from the MSCI index.
“Foreign investors holding these stocks will likely continue to sell regardless of their current profit or loss positions,” Teguh explained. He added that even though these conglomerate stocks have already seen significant price drops, they remain vulnerable to further declines due to their substantial market capitalization.
Despite the current bearish trend, Teguh identified the 5,800–5,900 range as a robust floor for the market. Should these conglomerate stocks continue their downward trajectory, he believes the index is unlikely to fall significantly below this support level. From an investment perspective, he suggested that the current market volatility creates attractive opportunities for long-term investors, as valuations for fundamentally sound companies have become increasingly affordable.
Looking ahead, the banking and commodity sectors are positioned to potentially stabilize the market. Teguh highlighted that as commodity prices begin to climb again, these sectors may provide the necessary support to lift investor sentiment.
Providing a broader technical perspective, M. Nafan Aji Gusta, Senior Technical Analyst at Mirae Asset Sekuritas Indonesia, emphasized that JCI volatility will remain elevated due to a combination of domestic and global headwinds. He pointed to the depreciation of the rupiah, which is currently hovering around the 17,600 level, and the aggressive stance of Bank Indonesia in maintaining interest rates as key drivers of this instability.
Furthermore, the market continues to grapple with the ripple effects of global index rebalancing, particularly involving the MSCI index at the end of May 2026. Despite these structural challenges, Nafan maintains an optimistic outlook, suggesting that the JCI is currently trading in undervalued territory, which presents a strategic window for investors to begin accumulating shares gradually.
Summary
The Jakarta Composite Index (JCI) experienced a sharp decline of 2.02 percent to reach 5,972 during Friday’s trading session. This downturn is primarily driven by significant selling pressure on major conglomerate stocks, such as BREN, DSSA, and TPIA, following their removal from the MSCI index. Market observers note that foreign investors continue to offload these high-cap shares, putting substantial weight on the index.
Despite the current bearish sentiment fueled by rupiah depreciation and domestic interest rate policies, analysts suggest that the JCI may find a floor within the 5,800–5,900 range. While volatility remains high, experts believe the market is now in an undervalued position, offering long-term opportunities. Potential stabilization is expected as the banking and commodity sectors eventually provide support to restore investor confidence.