The Jakarta Composite Index clawed back from a steep 5% plunge during the morning session on October 19, 2026, narrowing its losses to 3.8% by midday after rescue capital entered the market, CNBC Indonesia reported.
State-Backed Equities Rebound as Market Liquidity Shifts
State-owned banking stocks drove the intraday recovery after suffering severe drops late last week. PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) pared its losses from a 6.8% maximum drop down to about 3%, while PT Bank Mandiri (Persero) Tbk (BMRI) reversed course entirely to gain 0.59%, according to CNBC Indonesia. PT Bank Negara Indonesia (Persero) Tbk (BNI) also trimmed its losses to 1%, alongside mining entities PT Aneka Tambang Tbk (ANTM) and PT Timah Tbk (TINS) recovering ground after hitting their lower trading limits. Market reports indicated that the Danantara sovereign investment agency stepped in to acquire heavily discounted state-owned shares. According to data IDNFinancials.com, prices for BBRI, BMRI, BBNI, and BBCA had fallen nearly 15% and touched the Auto Rejection Bawah limit on Friday, October 16.
Consortium Pledges Billions Amid Capital Adequacy Debates
The intervention follows a broader market rout triggered on October 16, 2026, when the index fell over 10% in a single day after Morgan Stanley Capital International proposed downgrading Indonesia to a Standalone Market. Responding to the slump, Jusuf Hamka, controller of PT Citra Marga Nusaphala Persada Tbk and a member of the Presidential Advisory Council, announced via Instagram on October 18, 2026, that his business consortium would deploy Rp5 trillion to buy blue-chip stocks offering 8% to 9% annual dividend yields, IDNFinancials reported. Jusuf Hamka described the MSCI proposal as an attempt by outside parties to destabilize the Indonesian government. Bloomberg Technoz noted that the Daya Anagata Nusantara (Danantara) investment agency prepared an additional US$1 billion, equivalent to roughly Rp18 triliun, to support domestic assets through the end of the year, following an earlier claim of allocating up to US$ 3 miliar for domestic and foreign stock and bond investments. However, based on Indonesia Stock Exchange data showing a daily average transaction value of Rp16.23 triliun between October 12 and 16, 2026, Bloomberg Technoz reported that this additional state capital would sustain market turnover for less than two trading days.
Frequently Asked Questions
Why did the Jakarta Composite Index drop sharply on October 16, 2026?
The index fell over 10% in a single day after Morgan Stanley Capital International proposed downgrading Indonesia to a Standalone Market, according to IDNFinancials data.
How much capital has Jusuf Hamka committed to the stock market?
Jusuf Hamka announced on October 18, 2026, that his business consortium is deploying Rp5 trillion to purchase blue-chip equities such as Bank Mandiri, BRI, BNI, and BCA, as reported by IDNFinancials and Rmol.id.
What is the total size of Danantara’s support fund for domestic assets?
The Daya Anagata Nusantara agency prepared an additional US$1 billion, or approximately Rp18 triliun, to invest in domestic markets through the end of the year, according to Bloomberg Technoz.
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