Jakarta. The Indonesia Stock Exchange (IDX) halted trading on Tuesday after the Jakarta Composite Index (JCI) plummeted 5 percent during morning trade, marking its lowest level since September 2021. The index later trimmed losses but still closed 3.84 percent lower at 6,223.39.

“A drop of more than 5 percent signals that Indonesia’s economy is under significant pressure,” said Hendra Wardana, founder of Stocknow.id. “Foreign investors are becoming increasingly cautious, although markets are cyclical, and a rebound is possible if economic policies stabilize.”

How Trading Halts Work
A trading halt is a temporary suspension of stock market transactions to maintain market stability and prevent drastic price declines in a short period.

Under IDX regulations, a trading halt is imposed for 30 minutes if the JCI falls more than 5 percent in a single trading day. If the index drops beyond 10 percent, trading is halted again for another 30 minutes.

In cases where the JCI declines by more than 15 percent, the IDX can implement a trading suspension, which may last until the end of the trading session or longer, subject to approval by the Financial Services Authority (OJK).

During a trading halt, all stock transactions are temporarily suspended, preventing investors from buying or selling assets. The exchange may halt trading for the entire market or specific stocks experiencing extreme volatility.

Historical Market Crashes

The latest market turbulence adds to a series of significant downturns in the JCI’s history. Here are some of the worst declines:

• October 14, 2002: Two days after the Bali bombings that killed 202 people, the JCI plunged 10 percent as investor panic gripped the market.
• August 5, 2003: A terrorist attack on Jakarta’s JW Marriott Hotel triggered a 3.05 percent drop in the index, adding to security concerns.
• October 8, 2008: The index plummeted 10.38 percent amid the global financial crisis, forcing the IDX to halt trading. President Susilo Bambang Yudhoyono held an emergency meeting to address the situation.
• November 11, 2016: The JCI fell 4.01 percent as foreign investors pulled out Rp 2 trillion ($140 million), driven by political uncertainty.
• August 13, 2018: The index dropped 3.55 percent, weighed down by a weakening rupiah and concerns over Indonesia’s widening current account deficit.
• March 9, 2020: As COVID-19 fears gripped global markets, the JCI tumbled 6.58 percent, triggering multiple trading halts. The index ultimately hit its lowest level in over a decade, falling below 4,000 by late March.