By the end of June 2026, the Indonesian stock market remained under severe pressure that had persisted since the beginning of the year. The Indonesia Composite Index (ICI) declined by 34.74% year-to-date (YTD), making it one of the weakest-performing stock indices in the world. This was driven by global uncertainty, the depreciation of the rupiah, which at one point reached a record low, continued foreign capital outflows, and the ongoing MSCI evaluation that still leaves open the possibility of Indonesia being downgraded to frontier market status. Bank Indonesia responded again by gradually raising its policy interest rate two times with 25 basis points (bps) each, to maintain rupiah stability, which further weighed on market sentiment despite relatively resilient domestic economic fundamentals. This pressure spread across all indices on the Indonesia Stock Exchange, with every listed index remaining in correction territory, including big market capitalization, high liquidity, sharia, and thematic indices.
