The Jakarta Composite Index (IHSG), the primary benchmark for the Indonesia Stock Exchange (BEI), experienced a notable correction of 8.35 percent during the trading week of May 18-22, 2026. This significant dip reflects a period of heightened volatility for the Indonesian capital market.
Despite the overall market downturn, several key activities on the BEI demonstrated positive momentum. Kautsar Primadi Nurrahmad, Corporate Secretary of BEI, highlighted that the average daily transaction value saw a robust increase of 15.68 percent, climbing to IDR 21.77 trillion from IDR 18.82 trillion in the preceding week. This surge indicates continued investor engagement even amidst price adjustments.
Further underscoring this positive trend, the average daily transaction volume on the BEI also rose by 2.53 percent, reaching 36.67 billion shares compared to 35.76 billion shares the previous week. However, contrasting these gains, the average daily transaction frequency recorded a 6.5 percent decline, settling at 2.37 million transactions from 2.53 million transactions a week prior, suggesting a concentration of larger trades rather than broader participation.
The week’s correction led the IHSG to close at 6,162.045, significantly down from its previous position of 6,723.320. Kautsar confirmed this movement in an official statement released on Saturday, May 23. This decline in the benchmark index was mirrored by a sharp decrease in the BEI’s total market capitalization.
The Indonesia Stock Exchange’s market capitalization plummeted by 10.07 percent, shrinking from IDR 11,825 trillion to IDR 10,635 trillion. This substantial reduction reflects the broad impact of the week’s market performance. Adding to the pressure, foreign investors recorded a net sell of IDR 309.52 billion on Friday, May 22. Cumulatively for the year 2026, foreign investors have registered a substantial net sell of IDR 41.63 trillion, indicating a sustained outflow of foreign capital from the Indonesian market.
In a notable development amidst these market dynamics, the BEI hosted a high-profile visit on Tuesday, May 19. Sufmi Dasco Ahmad, Deputy Speaker of the Indonesian House of Representatives (DPR RI), visited the BEI Building. He was accompanied by several prominent figures, including Friderica Widyasari Dewi, Chair of the Financial Services Authority (OJK) Board of Commissioners, Rosan Roeslani, Chief Executive Officer of Danantara, and Dony Oskaria, Chief Operating Officer of Danantara.
Kautsar explained that this significant visit served as a crucial demonstration of support aimed at strengthening investor confidence and ensuring the stability of the Indonesian capital market. During the discussions, Dasco conveyed a message of optimism regarding the future prospects of Indonesia’s capital market, despite the current pressures faced by the IHSG. This expression of confidence from high-level officials seeks to reassure stakeholders and reinforce long-term positive sentiment.
Summary
The Jakarta Composite Index (JCI) experienced a significant correction of 8.35 percent during the trading week of May 18–22, 2026, falling to a level of 6,162.045. This decline caused the Indonesia Stock Exchange’s total market capitalization to shrink by 10.07 percent to Rp10,635 trillion, driven largely by a trend of net selling by foreign investors. Despite the downturn in the index, both the value and volume of daily transactions saw an increase.
In response to these market conditions, the Indonesia Stock Exchange hosted a courtesy visit from Deputy Speaker of the Indonesian House of Representatives Sufmi Dasco Ahmad, alongside officials from the OJK and Danantara, on May 19, 2026. The visit was intended to bolster investor confidence and express optimism regarding the long-term prospects of Indonesia’s capital market. This initiative serves as a strategic measure to maintain market stability amidst ongoing volatility.