Foreign investors offloaded shares totaling IDR 807 billion this week as the Induk Harga Saham Gabungan (IHSG) experienced a sharp decline. The index plummeted 8% over the course of the week, eventually closing at the 6,162 level.
According to data from the Indonesia Stock Exchange (IDX), the index even dipped below the 6,000 threshold on Friday (May 22). Despite this volatility, the IHSG showed signs of recovery during Friday’s closing session, posting a 1.1% gain compared to the previous day.
Interestingly, while the market struggled, trading volume and value saw an uptick. Trading volume rose by 2.53% to 36.67 billion shares, while the total transaction value surged by 15.7% to IDR 21.77 trillion. Although domestic investors continued to dominate market activity, the foreign investor share of total transactions increased from 33% last week to 41%, with foreign buy transactions hitting IDR 44.72 trillion and sell transactions reaching IDR 45.33 trillion.
Market data from Stockbit indicates that foreign investors continued to divest from major banking stocks. PT Bank Central Asia Tbk (BBCA) and PT Bank Mandiri Tbk (BMRI) saw significant sell-offs, with outflows of IDR 1.02 trillion and IDR 407.37 billion, respectively. Conversely, foreign capital flowed into the mining sector, as investors accumulated shares in PT Timah Tbk (TINS) amounting to IDR 792.31 billion and PT Merdeka Copper Gold Tbk totaling IDR 688.44 billion.
Understanding the 8% IHSG Plunge
The Indonesian stock market faced heavy pressure this week following the announcement of the FTSE Global Equity Index Series quarterly review, which was scheduled for Friday (May 22) at 6:00 PM US time. The market’s recent struggles have been stark; the IHSG has dropped 30% year-to-date (ytd). This marks a dramatic shift from January 20, 2026, when the index hit an all-time high (ATH) of 9,134, boasting a total market capitalization of IDR 16,590 trillion. Currently, that market capitalization has shrunk to IDR 10,635 trillion.
The decline is largely attributed to signals from FTSE regarding the potential removal of Indonesian stocks categorized under the High Shareholding Concentration (HSC) list. The HSC is a list of IDX-listed companies where the majority of shares are held by a limited number of parties or specific affiliate groups. This data was initially released by the IDX to enhance market transparency, minimize speculative risks, and align with global investor standards.
Summary
The Indonesia Stock Exchange (IHSG) experienced an 8% decline this week, closing at 6,162 after briefly falling below the 6,000 threshold. Foreign investors withdrew a net total of IDR 807 billion, primarily divesting from major banking stocks such as BBCA and BMRI. Despite the sell-off, trading activity remained high with transaction values reaching IDR 21.77 trillion, and some capital flowed into the mining sector, specifically into TINS and Merdeka Copper Gold.
Market volatility was largely driven by the FTSE Global Equity Index Series quarterly review, which signaled the potential removal of companies listed under the High Shareholding Concentration (HSC) category. This downturn represents a significant shift from the year-to-date performance, contributing to a total market capitalization drop from an all-time high of IDR 16,590 trillion to its current level of IDR 10,635 trillion. The HSC list was implemented by the IDX to improve transparency and align with international investor standards.
