Indonesia Stocks Fall 29.24% as Global and Local Pressures Build
Indonesia’s benchmark stock index has fallen 29.24% in 2026, with the financial regulator pointing to geopolitical uncertainty, commodity-market disruption, inflation and persistently high global interest rates. OJK official Hasan Fawzi said foreign investors’ changing strategies have added to the pressure. The index also slipped below 6,000 during one trading session in early October, though the regulator did not quantify how much each factor contributed to the year-to-date decline.
Indonesia’s benchmark stock index has lost 29.24% in 2026, a sharp decline the country’s financial regulator attributes to overlapping global risks and domestic pressures. The fall matters beyond the market: foreign investors have adjusted their strategies as geopolitical uncertainty, commodity disruptions and high interest rates weigh on sentiment.
Hasan Fawzi, chief executive for capital markets, financial derivatives and carbon exchanges at Indonesia’s Financial Services Authority (OJK), outlined the factors during an online press conference on October 5, 2026. He said no single event explained the Jakarta Composite Index’s (IHSG) year-to-date drop.
“It occurred because of a combination of global and domestic factors,” Hasan said.
The shift in investment strategies, particularly among foreign investors, has contributed to pressure on Indonesia’s capital market, he said. OJK did not provide a breakdown showing how much each factor contributed to the index’s decline, and the available account did not specify the domestic pressures.
Global pressures and investor shifts
Overseas, geopolitical uncertainty and disruptions to commodity distribution have unsettled markets. Prices for some commodities have also risen, adding to inflationary pressure and holding back global economic growth, Hasan said.
Global interest rates have remained high for an extended period, a trend often described as “higher for longer.” Hasan said that environment has also pressured the rupiah and prompted foreign investors to reassess their exposure to Indonesian securities.
For investors and companies in Indonesia, the combination can make market conditions more difficult to navigate: global rate expectations, currency pressure and changing foreign flows are all part of the backdrop for local share prices. But the regulator’s remarks do not assign a precise share of the IHSG’s decline to any one of those forces.
Separate session showed index below 6,000
The year-to-date figure captures a broader period than a single trading session. During the first session on Friday, October 2, 2026, the IHSG fell to 5,990. Shares of AMMN and GOTO were cited as drags on the index at that time.
That session provides a snapshot, not a measure of the full-year decline. OJK’s reported 29.24% fall covers the index’s performance across 2026 up to the time Hasan spoke.
