Jauhari Mahardhika, Jakarta – Foreign investors have sold more than Rp 70 trillion ($3.89 billion) worth of Indonesian equities so far this year, extending capital outflows as concerns over global monetary policy, geopolitical tensions, and domestic market reforms weigh on investor sentiment.
Data from the Indonesia Stock Exchange (IDX) showed that foreign investors recorded another Rp 1.1 trillion in net sales across all markets on Wednesday, pushing cumulative net foreign outflows in 2026 beyond the Rp 70 trillion mark.
The selloff coincided with a sharp decline in the benchmark Jakarta Composite Index (JCI), which fell 217.4 points, or 3.5%, to close at 5,883.8. Declining stocks significantly outnumbered gainers, with 646 shares falling against 103 advancing stocks, while trading turnover reached Rp 15.03 trillion.
Indonesia's largest lender by assets, Bank Rakyat Indonesia (BBRI), was the most heavily sold stock, with foreign investors posting net sales of Rp 272.8 billion.
Brokerage firm Pilarmas Investindo Sekuritas said investors remain focused on geopolitical developments in the Middle East and the outlook for U.S. monetary policy.
Markets are closely watching the upcoming release of the US Personal Consumption Expenditures (PCE) Price Index, one of the Federal Reserve's preferred inflation indicators. The data could provide further clues on the timing and pace of future US interest-rate adjustments.
Investor caution has intensified after the Federal Reserve maintained its benchmark interest rates while signaling continued vigilance over inflation risks.
"The market is still waiting for stronger signals regarding the direction of U.S. interest rates," Pilarmas said in a research note.
Domestic factors have also weighed on sentiment.
Earlier this month, MSCI retained Indonesia's status as an emerging market in its 2026 Market Classification Review but decided to extend its monitoring of Indonesia's capital market reforms until November 2026.
The decision relieved concerns that Indonesia could face a potential downgrade in market status. However, analysts said the extension also highlighted lingering concerns over the implementation of market reforms and regulatory improvements.
Investors are expected to closely monitor progress on capital market reforms over the coming months ahead of MSCI's next evaluation in November.