The Indonesia Composite Index (IHSG) extended its sharp decline on Friday (June 5, 2026), continuing the downward pressure after plunging nearly 2% in the previous trading session.

At the opening bell, the benchmark index initially rose 0.11% to 5,846.49. However, selling pressure quickly regained control, pushing the index down to 5,718.38, a loss of 121 points or 2.08%, within less than an hour of trading. During the morning session, the IHSG reached an intraday high of 5,860 and a low of 5,714.

Most stocks traded in negative territory. A total of 469 stocks declined, while 156 advanced and 107 remained unchanged.

Trading value during the early session reached Rp6.18 trillion, with 7.81 billion shares changing hands across 648 thousand transactions. Meanwhile, the market capitalization of the Indonesia Stock Exchange shrank to Rp10,096 trillion.

The decline in the IHSG coincided with further weakness in the rupiah, which once again touched a record low. According to Refinitiv data, the rupiah opened 0.17% weaker at Rp18,050 per US dollar.

This depreciation continued the pressure seen in the previous session. On Thursday (June 4, 2026), the Indonesian currency closed 0.45% lower at Rp18,020 per US dollar, marking its weakest level on record against the greenback.

Meanwhile, the US Dollar Index (DXY), which measures the dollar’s performance against six major global currencies, remained relatively stable at 99.438 as of 09:00 WIB after ending the previous session down 0.12%.

Following the heavy selloff witnessed yesterday, the IHSG is expected to remain under pressure today. Several major domestic and international factors are likely to influence market direction.

The sharp decline on Wall Street, renewed gains in oil prices, a stronger US dollar, and the continued resilience of the US economy may all add pressure to Indonesia’s financial markets.

Across Asia, South Korea’s Kospi Index plunged 4.11%, led by steep losses in large-cap stocks such as Samsung Electronics and SK Hynix, which fell around 6% and 8%, respectively. The small-cap Kosdaq Index also dropped 2.41%.

In Japan, the Nikkei 225 fell 1.1% as global technology stocks weakened. Meanwhile, Australia’s S&P/ASX 200 Index declined 0.2% in early trading.

Market sentiment in Hong Kong also appeared negative. Hang Seng futures were last traded at 25,158, below Thursday’s closing level of 25,253.40.

The weakness across Asian markets followed mixed trading on Wall Street overnight. The Dow Jones Industrial Average, however, reached a new record high after surging 874.86 points, or 1.73%, to close at 51,561.93.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto hosted representatives from Standard & Poor’s (S&P) Global at the Coordinating Ministry for Economic Affairs office in Jakarta on Wednesday (June 3, 2026).

The S&P delegation was led by Kim Eng Tan, Managing Director of Sovereign Ratings for S&P Asia Pacific. Discussions focused on Indonesia’s economic outlook and resilience amid ongoing global risks.

Airlangga explained that the government used the meeting to present Indonesia’s economic conditions, which remain solid despite external challenges such as geopolitical tensions, slowing global growth, and disruptions to international supply chains.

“This meeting serves as an important opportunity to reaffirm Indonesia’s economic resilience amid a global environment that remains highly uncertain,” Airlangga stated through his official Instagram account.

According to Airlangga, Indonesia’s economic stability is supported by a balanced combination of fiscal and monetary policies, strong domestic consumption, and improving external sector performance.

He emphasized that several key economic indicators continue to show positive trends. “Inflation remains under control, investment continues to grow positively, and downstream industrialization programs are beginning to generate tangible improvements in national industrial value creation,” he said.

During the meeting, the government also outlined several strategic initiatives designed to maintain economic growth momentum, including accelerating industrial downstream projects, strengthening energy and food security, and enhancing manufacturing competitiveness.

“These measures form part of Indonesia’s broader economic transformation strategy to strengthen resilience against global pressures while improving long-term competitiveness,” Airlangga explained.

He added that the government remains optimistic about Indonesia’s economic outlook as structural reforms and inclusive, sustainable development continue to move forward.

In response to the significant market decline, the Indonesia Stock Exchange (IDX) has proactively encouraged institutional and global investors to increase investment allocations in Indonesian equities to help stabilize the IHSG.

IDX Director of Corporate Assessment I Gede Nyoman Yetna stated that the exchange has prepared a series of roadshows aimed at strengthening demand in the capital market. These initiatives will target both domestic and international investors.

“We have met with several overseas stock exchanges to establish cooperation, including with foreign brokerage firms. Our goal is to introduce Indonesian listed companies to a broader audience and attract greater investor interest,” Nyoman told reporters at the IDX building in Jakarta on Thursday (June 4, 2026).

Domestically, the exchange also plans to expand capital market outreach programs across various regions by introducing listed companies to both institutional and retail investors.

When asked about coordination with insurance companies and pension funds as potential market stabilizers, Acting IDX President Director Jeffrey Hendrik emphasized that the exchange continues to maintain communication with various investor groups, including domestic institutional investors.

Jeffrey further stated that Indonesia’s capital market fundamentals remain strong. This is reflected in the continued earnings growth reported by listed companies.

According to him, all listed companies on the IDX recorded earnings growth exceeding 21% at the end of fiscal year 2025. In addition, companies included in the LQ45 Index posted net profit growth of 29.9% year-on-year during the first quarter of 2026.

Furthermore, approximately 80% of listed companies generated net profits in the first quarter of 2026, representing the highest proportion recorded over the past five years.

Jeffrey explained that only 63% of listed companies reported net profits in 2020. During the 2021–2025 period, the figure ranged between 73% and 76%, before increasing to 80% in the first quarter of this year.