Jakarta. The Indonesia Stock Exchange (IDX) temporarily halted trading on Tuesday after the Jakarta Composite Index (JCI) plunged 5 percent during the morning session.

According to Kautsar Primadi Nurahmad, corporate secretary of the IDX, the trading halt was triggered at 11:19:31 Jakarta Automated Trading System (JATS) time in accordance with IDX regulations.

The move follows IDX Board of Directors Decree No. Kep-00024/BEI/03-2020, issued in March 2020, which outlines emergency trading suspension procedures. According to the exchange, trading will resume at 11:49:31 Jakarta time, with no changes to the overall trading schedule.

The JCI was down 3.82 percent to 6,220 in the early trading session, pressured by heavy losses in banking and large-cap stocks. Bank Central Asia (BBCA) fell 2.62 percent, Bank Mandiri (BMRI) dropped 4.70 percent, Bank Rakyat Indonesia (BBRI) declined 3.66 percent, and Petrosea (PTRO) plummeted 15.02 percent. The LQ45 index, which tracks the 45 most liquid stocks, also weakened by 3.10 percent.

As the market was frozen, the JCI stood at 6,146, after opening at 6,471, marking its lowest level since September 2021.

“Currently, the market is in a highly speculative phase, driven by prevailing uncertainties that are making investors nervous,” Kiwoom Sekuritas Indonesia (KSI Research) wrote in a note on Tuesday.

Market analysts point to several factors fueling the selloff, including mass layoffs in key industries ahead of the Eid holiday and concerns over upcoming credit ratings from Fitch, S&P, and Moody’s. Recent downgrades by Goldman Sachs and Morgan Stanley have already dampened investor confidence.

Manufacturing firms such as Yamaha Music Product Asia, Adis Dimension Footwear, and Victory Ching Luh Indonesia have cut thousands of jobs, amplifying fears of a slowdown. Additionally, Goldman Sachs lowered Indonesia’s stock market rating from overweight to market weight, while Morgan Stanley cut its MSCI Indonesia weighting to underweight.

Adding to the volatility are looming interest rate decisions in Indonesia, Japan, and the US, as well as rumors of the resignation of two key economic ministers.

“With these factors at play, the best strategy is to hold and wait for JCI to stabilize around 6,200,” KSI Research advised.