Jakarta. Jakarta Composite Index (JCI) fell as much as 4.22% to around 5,360 in early trading on Monday, marking its lowest level this year amid a global equity sell-off and persistent concerns over Indonesia’s financial markets.

The benchmark index was down 1.96% at 5,486 shortly after the opening bell before extending losses within minutes. Trading volume reached 3.75 billion shares with turnover of Rp 2.7 trillion ($149 million) across more than 258,000 transactions. Decliners heavily outpaced gainers, with 566 stocks falling, 55 advancing, and 91 remaining unchanged.

Phintraco Sekuritas said pressure on the domestic market stemmed from a combination of global and domestic factors.

Wall Street posted its worst session since October on Friday after a broad sell-off in major technology stocks and stronger-than-expected US labor market data fueled expectations that the Federal Reserve could keep interest rates higher for longer.

The S&P 500 dropped 2.6%, marking its largest one-day decline since Oct. 10, when the Trump administration threatened a 100% tariff on Chinese imports. The Dow Jones Industrial Average fell 1.4%, while the Nasdaq Composite plunged 4.2%.

According to Phintraco Sekuritas, US nonfarm payrolls rose by 172,000 in May, significantly exceeding market expectations of 80,000. The stronger labor data pushed US Treasury yields higher and reinforced expectations that the Fed will maintain a restrictive monetary stance for an extended period.

At the same time, gold prices tumbled 2.2% to $4,375 per troy ounce on Friday. Crude oil prices also retreated, although markets remain wary of Iran's threat to close the Bab el-Mandeb Strait should tensions in the Middle East escalate further.

Investors are also monitoring several major global developments this week, including the evolving US-Iran conflict, the upcoming OPEC+ meeting, and SpaceX's planned Nasdaq listing, which is expected to become one of the largest IPOs in global capital market history.

On the domestic front, investors are awaiting several key economic releases, including Indonesia's foreign exchange reserves data for May on June 8, the consumer confidence index for May on June 10, and April retail sales figures on June 11.

Phintraco Sekuritas said local sentiment remains clouded by concerns over the rupiah's weakness, speculation about a possible emergency policy meeting by Bank Indonesia, and rumors surrounding potential changes in the leadership of the Finance Ministry and the central bank.

The brokerage also pointed to concerns over a possible downgrade of Indonesia's sovereign credit rating by S&P and the risk of MSCI reclassifying Indonesia from an emerging market to a frontier market.

"Therefore, the JCI is expected to remain volatile this week, with support levels at 5,400-5,500 and resistance at 5,700-5,800," Phintraco Sekuritas said.

Kiwoom Sekuritas Indonesia noted that amid the JCI's nearly 20% correction over the past month and the rupiah's depreciation toward Rp 18,000 per US dollar, Bank Indonesia Governor Perry Warjiyo, Finance Minister Purbaya Yudhi Sadewa, and Deputy House Speaker Sufmi Dasco Ahmad appeared together at a press conference at the Parliament Complex on Saturday to demonstrate stronger fiscal and monetary coordination aimed at maintaining market stability and restoring investor confidence.

During the briefing, Bank Indonesia and the government reaffirmed that current policy efforts are focused on enhancing the attractiveness of domestic financial assets through more competitive yields on instruments such as government bonds (SBN) and Bank Indonesia Rupiah Securities (SRBI) to encourage foreign capital inflows.

Authorities also pledged to maintain adequate banking liquidity through the management of government cash placements at Bank Indonesia, with the aim of supporting the rupiah and easing pressure on domestic financial markets.

Regional markets were also under heavy pressure. As of 9:12 a.m. Jakarta time, Japan's Nikkei 225 had fallen 4.16%, South Korea's Kospi plunged 6.45%, Hong Kong's Hang Seng declined 1.45%, and China's Shanghai Composite slipped 0.85%.