Indonesia's benchmark stock index closed sharply lower on Tuesday, with the Jakarta Composite Index (IHSG) settling at 4,904.28, a drop of 192.54 points or 3.78%, according to detikFinance. The index had opened the session in positive territory at 5,126 and touched a high of 5,143 before sliding to a low of 4,895.
Trading value for the day reached Rp 11.43 trillion across 24.72 billion shares exchanged in 1.38 million transactions. Decliners overwhelmed advancers, with 624 stocks falling, 57 rising and 37 unchanged.
Why it matters
The close below the 5,000 mark, which Kompas.id described as a psychological level the index had earlier slipped beneath, extends a steep run of losses. According to detikFinance, the IHSG is down 6.87% over the week, 20.81% over the month, 43.28% year to date and 39.59% over the past year. A decline of this scale affects the pricing of pension funds, mutual funds and retail portfolios tied to the index, and it shapes how companies assess listing and fundraising plans.
Foreign investors lean toward selling
By the close of the first session, foreign buying stood at Rp 1.61 trillion against foreign selling of Rp 2.44 trillion, leaving a net foreign sell of Rp 831.55 billion, detikFinance reported, citing market data.
The heaviest net foreign selling in that session was concentrated in state-owned enterprises. PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) recorded a net foreign sell of Rp 173.45 billion, followed by PT Telkom Indonesia (Persero) Tbk (TLKM) at Rp 95.77 billion and PT Aneka Tambang (Persero) Tbk (ANTM) at Rp 69.40 billion, per Stockbit data cited by detikFinance.
Not all state-linked names saw outflows. The largest net foreign buys were also in companies with government ownership: PT Bank Syariah Indonesia (Persero) Tbk (BRIS) at Rp 37.87 billion, PT Bank Mandiri (Persero) Tbk (BMRI) at Rp 27.88 billion and PT Bank Negara Indonesia (Persero) Tbk (BBNI) at Rp 16.63 billion.
Analysts point to portfolio rebalancing and risk aversion
Coverage of the session offered several explanations for the selloff. Antara News Jatim reported that an analyst attributed the correction to a combination of asset rebalancing and risk-off behavior among investors. Kumparan.com reported an analyst linking the 3.27% decline seen during the session to MSCI-related factors and oil prices. IDNFinancials noted that foreign investors absorbed certain stocks even as the index dropped 2.62% in the first session.
These accounts differ in emphasis, and the figures reported across outlets reflect different points in the trading day rather than a single consolidated measure.
What to watch next is whether foreign outflows from state-owned heavyweights continue in the coming sessions and whether the index can recover the 5,000 level.
