Selling pressure in Indonesia’s stock market remains intense and shows no clear signs of easing. The Composite Stock Price Index (IHSG) recorded another sharp decline, extending the significant correction trend that has persisted over the past three months.

According to trading data, the IHSG closed the first session at 5,434.30, falling by 160.46 points or 2.87%. During intraday trading, the benchmark index even touched a low of 5,346.91.

Selling activity was widespread across nearly the entire market. A total of 646 stocks ended lower, while only 88 stocks advanced and 79 remained unchanged. Trading value reached Rp12.92 trillion, with transaction volume totaling 20.24 billion shares and trading frequency amounting to 1.38 million transactions.

Earlier in the morning, the index had briefly dropped by more than 4% within approximately the first 10 minutes of trading. This reflected extremely aggressive selling pressure and indicated that panic sentiment continued to dominate market behavior during the opening session.

Almost all sectors traded in negative territory, with only the basic materials sector managing to post gains. The healthcare, technology, and non-cyclical consumer sectors recorded the steepest declines during today’s session.

Among the stocks exerting the greatest downward pressure on the IHSG were TLKM, BBRI, and BBCA.

Indonesia’s financial markets continue to face multiple challenges, ranging from escalating geopolitical tensions to ongoing investor scrutiny of the country’s fiscal resilience.

Iran reportedly launched missile strikes against Israel on Sunday (June 7, 2026), marking the first such attack since the ceasefire agreement between Tehran and Washington took effect in April.

Iranian Parliament Speaker Mohammed Baqer Ghalibaf accused the United States’ maritime blockade and Israeli military operations in Lebanon of violating the existing agreement. He stated that U.S. military bases and Israeli assets in the region are now considered legitimate targets.

U.S. President Donald Trump, after receiving reports regarding the attack, stated that Iran’s actions would not contribute positively to ongoing negotiations. Trump was also reported to be planning contact with Israeli Prime Minister Benjamin Netanyahu in an effort to discourage retaliatory action.

The Islamic Revolutionary Guard Corps (IRGC) emphasized that the ceasefire remains valid on the condition that hostilities cease across all fronts, including Lebanon. Iran also warned that broader retaliatory measures would be taken if further attacks occur.

These renewed tensions threaten the fragile peace efforts currently underway. Iran is demanding an end to the conflict in Lebanon and the removal of the U.S. blockade, while Washington continues to urge Tehran to surrender its nuclear materials and abandon its nuclear weapons ambitions.

Domestically, Finance Minister Purbaya Yudhi Sadewa presented the realization of Indonesia’s State Budget (APBN) through the end of May 2026 during the APBN KiTA press conference held on Friday (June 5, 2026).

Amid ongoing global uncertainty and heightened geopolitical tensions in the Middle East, the Finance Minister emphasized that Indonesia’s economic fundamentals remain solid, as reflected by the state budget’s highly positive performance.

The current fiscal deficit remains well-controlled, measurable, and aligned with the design of the 2026 State Budget. Budget financing is also being managed prudently, efficiently, and flexibly in response to developments in financial markets.

The fiscal deficit increased slightly to Rp180.4 trillion, equivalent to 0.70% of Gross Domestic Product (GDP). This figure was modestly higher than the Rp164.4 trillion deficit, or 0.64% of GDP, recorded at the end of April 2026.

Speaking during the press conference and quoted on Monday (June 8, 2026), Purbaya stated that the realization of the state budget through May 2026 continues to demonstrate positive performance.

Nevertheless, fiscal conditions remain a key concern for investors, particularly amid geopolitical conflicts that have driven up energy prices and related commodities, potentially increasing overall economic costs.

Meanwhile, the U.S. Dollar Index strengthened further to 100.069, its highest level since late March 2026. The stronger dollar reflects increased investor demand for U.S. currency assets, which may trigger capital outflows from emerging markets such as Indonesia. As a result, the rupiah could face additional pressure.

Over the past week, the Indonesian rupiah weakened to the Rp18,000 per U.S. dollar level.

Bank Indonesia Deputy Governor Destry Damayanti explained that the rupiah’s depreciation continues to be influenced by escalating geopolitical tensions in the Middle East, which have undermined prospects for peace. This situation has kept oil prices elevated while increasing global inflation risks and encouraging capital outflows from emerging economies.

In addition, Destry noted that domestic demand for U.S. dollars remains relatively high, driven by dividend repatriation activities and foreign debt repayments. Consequently, pressure on the rupiah exchange rate remains significant.