Indonesian Stocks, Rupiah Plunge on Economic Worries

Indonesia's financial markets experienced a sharp downturn on Monday, June 8, 2026, with both the Composite Stock Price Index (IHSG) and the rupiah currency closing significantly weaker.

The IHSG saw a substantial drop of 4.52%, settling at 5,342 points. Concurrently, the rupiah depreciated heavily against the US dollar, reaching Rp 18,187. Trading data from the Indonesia Stock Exchange revealed a market dominated by declining stocks, with 701 stocks falling, 78 rising, and 180 remaining stagnant. Transaction volumes reached 29.9 billion shares valued at Rp 21.71 trillion, with 2.18 million transactions recorded.

Equity analysts pointed to several key factors influencing the market's performance. Hari Rachmansyah, an equity analyst at PT Indo Premier Sekuritas, cited the release of foreign exchange reserve data as a primary driver. He noted that the IHSG faces significant pressure entering the week of June 8-12, 2026. Rachmansyah highlighted a combination of factors, including May's inflation rate exceeding expectations at 3.08% year-on-year, the rupiah breaching the Rp 18,000 mark, and a year-to-date net foreign sell of Rp 60.8 trillion, all reflecting a systemic erosion of investor confidence.

Adding to the market's woes, Ibrahim Assuaibi, Director at PT Traze Andalan Futures, identified the central bank's foreign exchange reserve data as a contributing factor to the rupiah's weakening. He also expressed market anxiety surrounding President Prabowo's ambitious and costly political agendas. Assuaibi suggested that large-scale spending on programs like "Makan Bergizi Gratis" (Free Nutritious Meals) and "Koperasi Desa Merah Putih" (Red and White Village Cooperatives) could widen the current account deficit. This concern arises as Indonesia's trade balance surplus has been shrinking, further exacerbating the economic pressures.