The Indonesia Composite Index (IDX) at the Indonesia Stock Exchange recorded a significant decline ahead of the weekend, according to the latest data. This was likely driven by mounting pressure from escalating social tensions and market instability, which left the index closing the session under pressure.

At the opening session, the IDX plunged as much as 2.27%, hitting the 7,771.28 level, with 662 stocks declining and only 89 advancing. Although it had dropped to that intraday low, the index eventually closed the day with a correction of 1.53%, ending the session at 7,830.49.

Factors Behind the IDX Downturn

1. Large-Scale Demonstrations
   Waves of protests that began on Thursday (August 28) triggered uncertainty in the capital market. This socio-political instability became one of the main factors that led to the index experiencing a deep correction.
    

2. Foreign Capital Outflow
   Significant net selling by foreign investors was recorded on Friday (August 29), further increasing pressure on the domestic capital market’s performance.
    

3. Sector Sentiment and Technical Pressure
   From a technical perspective, the IDX failed to hold its position at the psychological level of 8,000 and breached the 7,900 support area. This likely triggered panic selling and heightened selling pressure.
    

4. Rupiah Depreciation Against the U.S. Dollar
   The weakening of the rupiah worsened investor sentiment in the stock market, which has historically been highly sensitive to currency fluctuations.
    

Indonesia Stock Exchange (IDX): Fundamentals Remain Intact

Despite the sharp decline, the IDX emphasized that Indonesia’s capital market fundamentals remain solid. The correction is viewed as a normal part of market dynamics, and regulators are currently not considering any policy adjustments.

With ongoing political uncertainty influencing sentiment, along with persistent external and internal pressures, the IDX’s movement is expected to remain volatile in the short term.