Indonesia’s stock market experienced a notable decline on Thursday as the Jakarta Composite Index (JCI) fell by 1.51%, closing at 5,247 points. This drop of 80 points comes amidst efforts by Bank Indonesia to bolster economic stability through various liquidity measures, while global economic uncertainties continue to impact investor sentiment.

Despite these domestic monetary measures, market volatility was evident as the JCI fluctuated between 5,185 and 5,350 points during the early trading session. Trading activity was robust, with approximately 1.22 billion shares exchanged in 76,140 transactions, amounting to a total value of Rp 582.44 billion. The decline was widespread across the market, with 519 stocks falling, 54 rising, and 106 remaining unchanged.

Bank Indonesia kept its benchmark interest rate steady at 5.75% and maintained the lending facility rate at 6.5%. However, it increased the deposit facility rate by 25 basis points to 5%, aiming to attract foreign investment and support the national currency, the rupiah. To further enhance liquidity in the banking sector, the central bank announced a phased reduction in the average reserve requirement for conventional commercial banks from 9% to 7%, beginning with a decrease to 8% on November 1, 2026, followed by a further drop to 7% on December 1.

Despite domestic challenges, Indonesian stocks garnered attention from international investors, buoyed by a recent speech from President Prabowo Subianto. This interest was reflected as the US-listed iShares MSCI Indonesia ETF saw an increase of around 2%. However, analysts warned that a single session of gains might not indicate a sustained recovery.

The broader Asian markets also faced similar downtrends, with key indices such as Japan’s Nikkei 225, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai’s SSE Composite all recording losses. Persistent inflationary pressures and uncertainties surrounding future market conditions continue to weigh heavily on global investor sentiment.