Foreign investors recorded a significant net sell of IDR 807 billion this week amidst a sharp decline in the Jakarta Composite Index (IHSG). The benchmark index plummeted by 8% over the week, closing at the 6,162 level.
According to data from the Indonesia Stock Exchange (IDX), the IHSG briefly dipped below the 6,000 mark on Friday (May 22) before staging a recovery. By yesterday’s market close, the index managed to strengthen by 1.1% compared to the previous day’s performance, indicating a slight rebound.
Despite the broader market slump, IDX data revealed a notable increase in stock trading volume and value. Trading volume surged by 2.53% to reach 36.67 billion shares, while the total trading value impressively climbed by 15.7% to IDR 21.77 trillion, highlighting heightened market activity even during a downturn.
Domestic investors continued to dominate stock transactions throughout the week. However, the proportion of foreign investors in overall transactions saw a significant rise, increasing from 33% last week to 41% this week. Foreign investors executed buy transactions totaling IDR 44.72 trillion and sell transactions amounting to IDR 45.33 trillion, reflecting their substantial engagement in the market.
Further analysis from Stockbit data indicates that foreign investors continued to divest from major bank stocks. They notably offloaded shares in PT Bank Central Asia Tbk (BBCA) and PT Bank Mandiri Tbk (BMRI), with net sells reaching IDR 1.02 trillion and IDR 407.37 billion, respectively. Conversely, foreign investors actively accumulated shares in several mining companies. This included PT Timah Tbk (TINS), with accumulations reaching IDR 792.31 billion, and PT Merdeka Copper Gold Tbk, seeing inflows of IDR 688.44 billion.
What Caused the IHSG’s 8% Plunge?
The Indonesian stock market experienced a challenging week, largely driven by the impending announcement of the FTSE Global Equity Index Series quarterly review. This review was scheduled for Friday (May 22) at 6:00 PM United States time, a period often associated with significant market adjustments.
Based on data from the Indonesia Stock Exchange (IDX), the IHSG has seen a substantial decline of up to 30% year-to-date (YTD). This stark contrast follows a period of robust growth, where the index had previously achieved an all-time high (ATH) of 9,134 on January 20, 2026, boasting a market capitalization of IDR 16,590 trillion. Currently, the market capitalization of the IDX has significantly contracted to IDR 10,635 trillion.
The FTSE had previously signaled its intention to remove Indonesian stocks from its High Shareholding Concentration (HSC) list. The HSC identifies issuers on the IDX where a majority of shares are concentrated among a limited number of parties or specific affiliated groups, raising concerns about market transparency and liquidity. This data is proactively released by the IDX to enhance market transparency, minimize the risk of speculative practices, and align with global investor standards, fostering a more robust and equitable market environment.
Summary
The Jakarta Composite Index (IHSG) experienced a sharp 8% decline this week, closing at the 6,162 level amid significant foreign divestment totaling IDR 807 billion. Despite the downturn, trading activity remained high, with total volume reaching 36.67 billion shares and value rising to IDR 21.77 trillion. The market volatility is largely attributed to the FTSE Global Equity Index Series quarterly review and the potential removal of Indonesian stocks from the High Shareholding Concentration (HSC) list.
Foreign investors specifically offloaded major banking stocks, with BBCA and BMRI seeing significant net sells of IDR 1.02 trillion and IDR 407.37 billion, respectively. In contrast, there was notable accumulation in the mining sector, as investors poured IDR 792.31 billion into PT Timah Tbk and IDR 688.44 billion into PT Merdeka Copper Gold Tbk. The broader market continues to face pressure, with the index currently down 30% year-to-date from its previous record high.