Jakarta. Jakarta Composite Index (JCI) slid deeper into correction territory on Thursday as the rupiah plunged to a fresh record low near Rp 18,000 per US dollar, while concerns over Danantara-related commodity export reforms and escalating tensions in the Middle East triggered broad-based selling.

The benchmark index fell 22 points, or 0.37%, to 5,919 in early trading, moving within a range of 5,849-5,924. Losses later widened to more than 1%.

Within the first 10 minutes of trading, volume reached 2.4 billion shares with turnover of Rp 1.44 trillion ($79.9 million) across more than 182,000 transactions. Declining stocks outnumbered gainers by 432 to 104, while 155 stocks were unchanged.

According to Phintraco Sekuritas, market sentiment remained under pressure as the rupiah weakened 0.71% to Rp 17,966 per dollar.

Rising oil prices have also heightened inflation concerns, increasing the possibility that Bank Indonesia could raise interest rates again this year, particularly if the rupiah continues to weaken.

"Technically, if the JCI closes below the 5,900 level today, it could test the next support range of 5,750-5,840," Phintraco Sekuritas wrote in a research note on Thursday.

Investor sentiment was also weighed down by recent credit rating assessments for Danantara Investment Management (DIM).

Moody's assigned DIM a Baa2 rating with a negative outlook, matching Indonesia's sovereign rating and reflecting the agency's view of the strong credit linkage between DIM and the government. While Moody's expects the state-backed investment vehicle to receive government support if necessary, it warned that the rating could be downgraded if Indonesia's credit profile or related factors deteriorate.

Meanwhile, S&P Global Ratings assigned DIM a BBB long-term rating and A-2 short-term rating with a stable outlook. Fitch Ratings also awarded a BBB rating to DIM's inaugural bond issuance and Global Medium-Term Note program. Both agencies similarly emphasized DIM's close relationship with the Indonesian government.

Phintraco Sekuritas also highlighted reports that several Chinese importers have postponed coal purchases from Indonesia following the government's decision to centralize commodity exports, including coal, through Danantara Sumberdaya Indonesia (DSI).

The brokerage said importers remain concerned about uncertainties surrounding contract arrangements, pricing mechanisms, and trading procedures under the new system.

"This remains a negative catalyst for related stocks until there is greater clarity on the new framework and confirmation that it will not materially affect issuers' financial performance," the brokerage said.

Externally, Kiwoom Sekuritas Indonesia said renewed hostilities between the United States and Iran further dampened risk appetite after both sides reportedly launched reciprocal attacks targeting locations in Bahrain, Kuwait, and Iran's Qeshm Island.

The escalation reduced hopes for a near-term peace agreement, although US President Donald Trump said negotiations remain ongoing. Key sticking points continue to include Iran's nuclear program and the reopening of the Strait of Hormuz.

Wall Street retreated from record highs on Wednesday.  The S&P 500 fell 0.7% for its first decline in 10 sessions. The Dow Jones Industrial Average dropped 620 points, or 1.2%, while the Nasdaq Composite lost 0.9%.

Asian markets also traded lower. As of 9:05 a.m. Jakarta time, Japan's Nikkei 225 fell 1.73%, South Korea's Kospi dropped 1.71%, Hong Kong's Hang Seng declined 0.98%, and China's Shanghai Composite slipped 0.29%.

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