IHSG falls 1.9% as S&P 500 slide and reclassification watch weigh on Jakarta

Sentiment in Jakarta turned sharply negative, with the benchmark index closing at 58,733.7. The sell-off was driven by a broader retreat in US equities and fresh concerns over Indonesia's sovereign classification status.

By Handelsavisen Newsroom · Automated 2026-07-08 10:39 UTC · 1 min read

The Jakarta Composite Index (IHSG) closed sharply lower on Wednesday, dropping 1.89% to settle at 58,733.7.

The decline reflected a broad-based loss of confidence among investors, driven by negative sentiment spilling over from Wall Street and specific concerns regarding Indonesia's standing in global indices.

21% on Tuesday, created a risk-off environment that quickly permeated Asian trading hours.

US equity markets provided a headwind for emerging-market assets, with the S&P 500 and Dow Jones Industrial Average posting significant losses in the preceding session.

The sell-off in US technology-heavy indices, which saw the Nasdaq Composite fall 2.21% on Tuesday, created a risk-off environment that quickly permeated Asian trading hours.

Investors in Jakarta reacted to the deteriorating global risk appetite by reducing exposure to local equities.

Compounding the pressure from US market weakness was news that the S&P Dow Jones Indices has placed Indonesia on its watchlist for potential reclassification.