Jakarta. Jakarta Composite Index (JCI)  plunged more than 3% on Thursday as investors dumped commodity-linked shares after President Prabowo Subianto moved to tighten state control over strategic natural resource exports, overshadowing a broader rally across Asian markets.

JCI fell 223 points, or 3.54%, to 6,094 after moving between 6,080 and 6,366 during the session.

Trading volume reached more than 35.2 billion shares with turnover totaling Rp 17.9 trillion ($1 billion), while trading frequency exceeded 2.1 million transactions. Losers heavily outpaced gainers, with 663 stocks declining against 88 advancing and 69 unchanged.

Pilarmas Investindo Sekuritas said Indonesian equities failed to track gains in other Asian markets, which were supported by easing geopolitical tensions in the Middle East.

According to the brokerage, regional sentiment improved after negotiations between the United States and Iran reportedly entered their final stage. US President Donald Trump said talks had made progress, easing concerns over potential disruptions in the Strait of Hormuz, a critical global energy shipping route.

“Easing geopolitical tensions have reduced inflation expectations and the likelihood of further global interest rate hikes, supporting several Asian equity markets,” Pilarmas wrote in a research note on Thursday.

Despite the positive regional backdrop, Pilarmas said the JCI came under pressure from three major domestic factors.

The first was market concern over Prabowo’s policy to tighten governance of strategic commodity exports, including palm oil, coal, and ferroalloys, through a state-owned single-exporter scheme.

Pilarmas said investors were concerned the policy could hurt trade efficiency and create uncertainty among businesses.

“Although the policy is intended to improve trade governance and boost state revenue, the market is still assessing its impact on trade flows and investor interest,” the brokerage said.

The second pressure point came from macroeconomic conditions, particularly the rupiah’s continued weakness against the US dollar despite Bank Indonesia’s aggressive interest rate hikes.

“The policy has been seen as insufficient to ease external pressures and restore foreign investor confidence,” Pilarmas added.

As of publication time, the rupiah weakened 20 points, or 0.11%, to Rp 17,673 per US dollar.

The final factor weighing on sentiment was investor anticipation ahead of the FTSE Global Equity Index Series Quarterly Review due on May 22, 2026. The rebalancing is expected to influence foreign fund flows and potentially increase volatility in the domestic market.

Elsewhere in Asia, markets traded mixed as a rebound in oil prices offset Wall Street’s latest rally.

South Korea’s Kospi surged 8.4% to 7,815, driven by strong buying in technology stocks. Samsung Electronics jumped 8.5% after its labor union and management reached an agreement that avoided a potentially costly strike, while chipmaker SK Hynix soared 11.2% on optimism tied to its partnership with Nvidia.

Japan’s Nikkei 225 advanced 3.1% to 61,684 after government data showed exports rose nearly 15% in April from a year earlier despite disruptions stemming from the Iran conflict.

Chinese equities weakened, with Hong Kong’s Hang Seng Index falling 1.2% to 25,352 and the Shanghai Composite Index dropping 2% to 4,077.

On Wall Street overnight, US stocks rebounded after several days of losses. The S&P 500 gained 1.1%, while the Dow Jones Industrial Average climbed 1.3% and the Nasdaq Composite rose 1.5%.