May 23, 2026 | 06:46 pm
TEMPO.CO, Jakarta - Indonesia’s Jakarta Composite Index (JCI) fell 6.63 percent over the past week, closing at 6,162.05 on Friday, May 22, 2026, down from 6,599.24 on Monday, May 18.At the start of trading on Friday, the index briefly dropped to its lowest level this year at 5,976.07. It later recovered, ending 1.1 percent higher than Thursday’s close of 6,094.94.Despite the weekly decline, Finance Minister Purbaya Yudhi Sadewa expressed confidence that the market would rebound in the coming week alongside stronger economic fundamentals.“I think, looking at the technical aspects, next week will take a big leap,” Purbaya said at the Presidential Palace complex in Jakarta on Friday, May 22.He said the JCI is expected to recover over time as Indonesia’s underlying economic conditions remain solid, urging investors not to be overly concerned about short-term volatility.Acting President Director of the Indonesia Stock Exchange (IDX), Jeffrey Hendrik, said on Monday that market uncertainty remains elevated. He added that the recent decline in Indonesian equities also reflects broader regional trends in Asia during a period of global market correction.He pointed to several external pressures, including fluctuating commodity prices, currency volatility in multiple countries, and uncertainty over conflicts in the Middle East.“Therefore, we always remind investors to pay attention to the fundamentals, not to panic, analyze carefully, and adjust their investment strategies according to their respective risk profiles,” he said.Market weakness was also linked to portfolio rebalancing by Morgan Stanley Capital International (MSCI), following its decision to remove six Indonesian stocks from the Global Standard Index and 13 stocks from the Global Small Cap Index.Earlier in the week, the index also came under pressure ahead of the announcement of a new state-owned enterprise entity overseeing natural resource export commodities, later identified as PT Danantara Sumberdaya Indonesia.On May 20, the JCI corrected from 6,599.24 to 6,370.68, a 3.46 percent decline.Sectoral pressure was led by mining stocks, including oil and gas and mineral companies, followed by plantation shares, particularly palm oil firms.Anastasya Lavenia Yudi contributed to the writing of this article.Read: Antam Gold Prices Fall for Second Consecutive Day to Rp2,773,000Click here to get the latest news updates from Tempo on Google News
