Indonesia's IHSG Plummets Amid Foreign Outflows and Currency Weakness

The Jakarta Stock Exchange’s composite index (IHSG) fell sharply in late June 2026, sliding to as low as 5.835 and registering weekly drops of up to 4.55%. A net foreign outflow of roughly Rp 6 trillion and a sell‑off in large‑cap stocks, particularly those linked to the Prajogo Pangestu conglomerate, weighed heavily on the market.

Economist Andry Asmoro of Bank Mandiri attributed the rebound in the rupiah and the IHSG to coordinated fiscal and monetary policy, but warned that the currency is vulnerable, with forecasts of the rupiah slipping to the 18,000 per US $ level. Market participants also remain attentive to U.S. Federal Reserve rate outlooks and lingering geopolitical tensions in the Middle East, which have intermittently affected oil supplies.

Despite these pressures, a few stocks posted gains, and the financial sector was the only sector to stay in the green. Analysts expect the index to test support around 5.700–5.800 in the coming weeks as investors monitor domestic data releases and global market cues.