Indonesia’s benchmark share index fell nearly 2% as concerns over market transparency combined with a weaker rupiah, higher oil prices and rising government bond yields.
Shares in Indonesia fell sharply on Tuesday as a mix of global and domestic pressures hit market sentiment, with the Jakarta Composite Index sliding 106.96 points, or 1.99%, to close at 5,266.13. The LQ45 index, which tracks the exchange’s leading stocks, also ended lower, down 9.14 points, or 1.69%, at 533.02.
Market analyst Elandry Pratama said the decline reflected a combination of forces that encouraged selling and weakened investor appetite for risk. Among the factors weighing on the market, he pointed to renewed concern over MSCI’s review of Indonesia’s investability, particularly questions about transparency in the local equity market. Recent reports from market data providers said MSCI has downgraded Indonesia’s information-flow assessment in its 2026 Global Market Accessibility Review, citing limited visibility into ownership structures and signs that can affect price formation.
Pratama also said the rupiah’s slide to 18,167 per US dollar added to anxiety over domestic financial stability. Higher Brent crude prices, which he said reached $112 a barrel, raised the prospect of stronger inflationary pressure and a heavier energy import bill. He added that the rise in the government’s 10-year bond yield to 7.52% made investors more cautious about the balance between risk and return in Indonesian assets.
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