In April 2026, the Indonesian stock market faced significant pressure amid rising global risk-off sentiment, a stronger U.S. dollar, persistently high global interest rates, heightened geopolitical uncertainty, and the global economic slowdown. Domestically, the depreciation of the rupiah and continued foreign fund outflows further weighed on the market, causing the Jakarta Composite Index (JCI) to decline sharply by 19.55% year-to-date (YTD). Market pressure was also exacerbated by concerns over the potential reduction in the weighting of Indonesian equities in global indices, which heightened the risk of additional foreign capital outflows. These conditions had a broad impact across various sectors, including the banking sector, which has long been a key pillar of the Indonesian stock market. Shares of major banks such as BBCA, BBRI, and BMRI recorded significant corrections amid foreign investor sell-offs, concerns over slowing credit growth, and rising liquidity pressure risks. In line with this, the IDX-PEFINDO Prime Bank Index (PRIMBANK10) also weakened by 19.82% YTD. Market pressure also affected the PEFINDO i-Grade Index, which corrected by 25.23% YTD through the end of April 2026.
