Jakarta. Indonesia’s stock market lost around Rp 1,190 trillion ($67 billion) in market value in just one week after President Prabowo Subianto unveiled a controversial policy to tighten state control over commodity exports, triggering one of the sharpest selloffs since the pandemic era.

The benchmark Jakarta Composite Index, or JCI, plunged 8.35% during the May 18–22 trading week, closing at 6,162.045 from 6,723.320 a week earlier, according to data from the Indonesia Stock Exchange. The selloff wiped the exchange’s market capitalization down 10.07% to Rp 10,635 trillion from Rp 11,825 trillion.

During intraday trading on Friday, the JCI briefly slid to the 5,900 level, territory last seen during the Covid-19 market turmoil, before rebounding alongside gains in broader Asian markets.

The sharp decline came after Prabowo announced a new export governance policy that would centralize shipments of strategic commodities such as coal, palm oil, and ferroalloys under a state-controlled entity operating beneath sovereign wealth fund Danantara Indonesia.

Prabowo said the policy could prevent up to $150 billion in annual state revenue leakages caused by price manipulation, under-reporting, and weak export oversight. The government subsequently established Danantara Sumberdaya Indonesia to oversee the new export system.

But investors feared the move could increase bureaucracy, disrupt trade flows, and reduce efficiency in one of Southeast Asia’s largest commodity-exporting economies.

Brokerage Pilarmas Investindo Sekuritas said markets were still trying to assess the implications of the policy on exporters and foreign investment sentiment.

The policy shock compounded existing concerns over Indonesia’s weakening rupiah, which has remained under pressure against the dollar despite aggressive monetary tightening by Bank Indonesia.

Foreign investors recorded a net sell-off of Rp 309.5 billion on Friday alone, bringing total foreign outflows in 2026 to Rp 41.63 trillion.

The latest slump marks a dramatic reversal for Indonesian equities, which only four months ago celebrated a record high when the JCI hit an all-time peak of 9,134.70 on Jan. 20.

Although the market recovered slightly on Friday after Danantara assured investors that existing long-term export contracts would not be canceled, concerns persisted after global rating agencies Moody’s and S&P warned the policy could distort markets, weaken export performance, and potentially pressure Indonesia’s sovereign credit profile.

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