IHSG in Consolidation Phase, Down 34.74% YTD
IHSG ended the first half of 2026 down 34.74%. OJK said the slump reflects a market consolidation phase driven by global uncertainty and portfolio shifts.
JAKARTA — The Jakarta Composite Index (IHSG) ended the first half of 2026 with a steep correction. By the end of June 2026, Indonesia’s benchmark stock market index stood at 5,643.19, or down 34.74% year-to-date (ytd).
The Financial Services Authority (OJK) said the market is currently trapped in a long consolidation phase. Persistent selling pressure has been a daily sight for market participants since the beginning of the year.
Hasan Fawzi, OJK’s Executive Chief Supervisor for Capital Markets, Financial Derivatives, and Carbon Exchange, explained that the weakness did not stem from a single factor. A combination of external and internal pressures has weighed on share prices of listed companies on the domestic exchange.
“This condition is influenced by ongoing global uncertainty, investors’ perceptions of domestic conditions and policies, as well as portfolio adjustments or rebalancing by investors,” Hasan said in a virtual press conference on Tuesday (7/7/2026).
Transaction Dynamics and Foreign Capital Flows
Although the IHSG has been under pressure, Hasan noted that capital market liquidity remains fairly well maintained. The average daily transaction value (RNTH) in June 2026 reached Rp22.23 trillion. The figure was slightly lower than May 2026, which was around Rp22.86 trillion.
Foreign investors still appeared hesitant to buy into the stock market. In June 2026 alone, net selling reached Rp19.63 trillion. However, there was an interesting anomaly in the government bond market.
Foreign investor interest instead shifted to State Securities (SBN). Throughout June 2026, foreign investors recorded net buying of Rp22.43 trillion. This asset shift shows that investor confidence in government fixed-income instruments remains relatively strong amid turbulence in the stock market.
Impact on Investors and the Industry
For market participants, a 34.7% correction is more than just a number on a screen. For retail and institutional investors alike, the decline means a significant shrinkage in investment portfolio values in the first six months. The drop has forced many investment managers to adjust strategies to protect clients’ assets.
The investment management industry has also come under pressure. Based on OJK data, the net asset value (NAB) of mutual funds as of the end of June 2026 stood at Rp652.9 trillion. This reflects a 4.79% monthly decline and a 3.32% year-to-date correction.
Market IndicatorPerformance/ValueIHSG level (June 2026)5,643.19IHSG correction (YTD)34.74%Foreign net sell (stocks, June)Rp19.63 trillionForeign net buy (SBN, June)Rp22.43 trillionStock RNTH (June)Rp22.23 trillion
Market Outlook Ahead
Although the weakening trend still dominated the first half, OJK noted some easing of pressure at the start of July 2026. In addition, the intermediation function in the capital market continued to operate despite difficult conditions. By the end of June, total fundraising through the capital market had reached Rp112.67 trillion.
Going forward, OJK is closely monitoring the potential for new financing. At present, 11 public offerings are still in the pipeline. The transactions are projected to raise around Rp15.84 trillion.
Market resilience will depend heavily on how quickly global sentiment improves and how monetary policy responds to domestic market dynamics that are searching for a new balance point.
