The Indonesian stock market remained under significant pressure through the end of May 2026, driven by a combination of global and domestic factors. Rising geopolitical tensions in the Middle East, higher U.S. Treasury yields, and a stronger U.S. dollar prompted global investors to reduce their exposure to risk assets in emerging markets, including Indonesia. Domestically, the depreciation of the rupiah, continued foreign capital outflows, and uncertainty surrounding MSCI’s review of the Indonesian capital market further weighed on market sentiment. As a result, the Jakarta Composite Index (JCI) declined by 29.14% YTD, making it one of the weakest-performing equity indices in the Asian. Market pressure was broad-based and affected nearly all sectors listed on the Indonesia Stock Exchange, including financials, property, infrastructure, industrials, technology, transportation, and consumer goods. Although the energy and commodity sectors continued to benefit from relatively high commodity prices, negative market sentiment still limited their performance.
