Asian stock markets were broadly dominated by negative sentiment during midday trading, with most major indices posting losses. Among them, Indonesia’s Composite Stock Price Index (IHSG) recorded the steepest decline, falling by more than 2.5%, alongside South Korea’s KOSPI.

At the close of the first trading session on Friday (June 5, 2026), the IHSG stood at 5,692, representing a decline of 2.53% compared with the previous trading day’s closing level.

During the session, the index reached an intraday high of 5,860 and touched a low of 5,673.

According to data from the Indonesia Stock Exchange (IDX), trading activity involved approximately 25.25 billion shares, with total transaction value reaching Rp21.08 trillion. Trading frequency was recorded at around 1.32 million transactions.

Meanwhile, the LQ45 Index fell to 566.6, reflecting a point-to-point decline of 2.46%.

All market sectors ended in negative territory. The transportation, financial, and energy sectors suffered the deepest losses, dropping by 4.44%, 4.07%, and 3.93%, respectively. Infrastructure and non-cyclical consumer sectors also weakened significantly, declining by 3.87% and 3.26%.

At the same time, several stocks posted substantial losses and ranked among the market’s top losers. Shares of PT Pacific Strategic Financial Tbk (APIC) plunged 14.8%, PT WEHA Transportasi Indonesia Tbk (WEHA) fell 14.7%, while PT Super Bank Indonesia Tbk (SUPA) dropped 14.5%.

Stock markets across Asia also remained in negative territory, although the IHSG recorded the largest decline among regional benchmarks.

The KOSPI (South Korea), TAIEX (Taiwan), CSI 300 (China), Hang Seng (Hong Kong), NIKKEI 225 (Japan), Shenzhen Composite (China), Shanghai Composite (China), FTSE Straits Times (Singapore), and SET Index (Thailand) declined by 5.41%, 1.33%, 1.24%, 1.14%, 1.10%, 0.64%, 0.37%, 0.19%, and 0.16%, respectively.

Furthermore, Bloomberg data showed that the IHSG has become the worst-performing stock index in Asia throughout 2026. Since the beginning of the year, the benchmark has fallen by 34.17% on a year-to-date basis.

Rupiah Hits a New All-Time Low

On the domestic front, the continued depreciation of the rupiah has become one of the most significant negative factors weighing on the Indonesian equity market. Throughout today’s trading session, the currency remained under pressure against the US dollar.

In the spot market at 1:30 p.m. WIB, the exchange rate stood at Rp18,042 per US dollar, reflecting a point-to-point decline of 0.05%.

Bloomberg data also indicated that the rupiah reached an intraday low of Rp18,074 per US dollar, marking a new all-time low against the US currency.

Throughout 2026, the rupiah has been the weakest-performing currency in Asia, having depreciated by 7.49% on a year-to-date basis.

The weakening currency is believed to be driven by concerns surrounding Indonesia’s fiscal deficit and current account deficit. In the first quarter of 2026, Indonesia’s Balance of Payments recorded a deficit of US$9.15 billion, significantly wider than the US$6.07 billion deficit reported in the previous quarter.

Meanwhile, the current account posted a deficit of US$4 billion, equivalent to 1.1% of Gross Domestic Product (GDP). This represented a sharp reversal from the previous quarter, which recorded a surplus of US$2.5 billion. As a result, the balance shifted by approximately US$6.5 billion within a single quarter.

In addition, investors remain concerned about policy uncertainty and inconsistency, which has contributed to elevated risk premiums on Indonesian financial assets.

The pressure is also evident in the government bond market. Yields across nearly all maturities—short, medium, and long term—have moved higher simultaneously, indicating widespread selling activity among investors in domestic bonds.

Yield curve inversion remains present, with the one-year government bond yield reaching 7.18%, substantially higher than the 10-year yield of 6.85%. The two-year yield stands at 6.94%, while the 16-year and 20-year maturities both yield 6.98%, and the 40-year tenor offers 6.92%. This configuration demonstrates a yield curve structure that no longer follows a normal upward slope.

Under normal market conditions, the opposite situation typically occurs. Investors generally demand higher returns for committing funds over longer periods because of the greater risks associated with long-term investments.

Josua Pardede, Chief Economist at Bank Permata, stated that the emergence of an inverted yield curve in Indonesia’s government bond market should be interpreted as a warning sign of serious short-term market stress.

According to Josua, an inverted yield curve indicates that market participants are increasingly concerned about near-term risks, particularly liquidity conditions, the future direction of Bank Indonesia’s benchmark interest rate (BI Rate), the possibility of capital outflows, and the government’s need to issue additional government securities amid a fragile market environment.