A Red Storm on the Indonesia Stock Exchange: Populist Policies, a Crisis of Confidence, and Government Rescue Efforts
The Indonesian capital market faced a severe shock on Friday (October 16, 2026). The Jakarta Composite Index (JCI) plummeted 11.57 percent, closing at 5,185.11, after having already dropped 8 percent shortly after the market opened. The Indonesia Stock Exchange (IDX) was forced to implement a 30-minute trading halt to curb the massive selling pressure. This downturn represents more than just red figures on a trading screen. A total of 809 stocks saw their values decline, while only 15 rose and three remained stagnant. In the first session alone, the JCI plunged 10.76 percent—or 630.78 points—to the 5,233 level. The total transaction value reached IDR 17.33 trillion, with a trading volume of 38.69 billion shares. Amidst investor panic, the government faces a fundamental question: is this decline merely a technical fluctuation, or does it reflect structural issues that have long gone unresolved? Concerns regarding a potential downgrade of Indonesia’s status by Mo...