Indonesia's IHSG Falls 2.55% as Selling Spreads Across Major Stocks

Morning gains give way to a broad retreat

Indonesia's benchmark stock index fell 2.55% to 5,147.36 at about 11:02 a.m. Jakarta time on Thursday, October 29, 2026, reversing an early rise as selling spread across banks, infrastructure companies and other major shares. RTI Business recorded 597 stocks falling, compared with just 102 rising and 85 unchanged.

The Jakarta Composite Index, known locally as the IHSG, had closed the previous session at 5,282.31. Its late morning level represented a loss of 134.95 points. From its early peak near 5,320.90, the index had fallen about 173.54 points, or 3.26%, showing how sharply the mood changed within the first trading session.

Trading reached 12.55 billion shares worth Rp5.01 trillion across 680,264 transactions by the RTI snapshot. Total market capitalisation, the combined stock market value of listed companies, stood at Rp9,057.23 trillion.

Bank Central Asia, Astra International, Bank Rakyat Indonesia, Telkom Indonesia and Barito Renewables Energy were among the companies weighing on the benchmark. Several other prominent shares lost more than 6%, while a smaller group of stocks continued to rise.

The retreat unfolded against concern about foreign selling, Indonesia's position in MSCI's market classifications and expensive borrowing worldwide. Investors also faced a busy evening of overseas announcements, including US inflation figures and a European Central Bank interest rate decision. The latest index reading was taken during trading, with the closing level still to come.

How the reversal unfolded

The IHSG opened at 5,305.20, up 22.89 points, or 0.43%, from the previous close, before reaching roughly 5,320.90. Selling then erased the opening gain and pushed the benchmark progressively lower.

• At 9:21 a.m., the index stood at 5,225.65, down 1.07% from the previous close, after touching 5,223.90 at 9:18 a.m.
• At 9:41 a.m., it reached 5,190.83, down 1.73% from the previous close and 2.16% from the opening level.
• At 9:54 a.m., an Indonesia Stock Exchange snapshot put the index at 5,193.06, showing a brief recovery from the earlier reading.
• At 9:59 a.m., the benchmark was at 5,171.04, down 2.11%, close to a session low at that point of 5,168.38.
• At about 11:02 a.m., RTI Business recorded 5,147.36, a decline of 2.55%.

The changing percentages use different starting points. At 9:41 a.m., the fall from the opening level was larger than the fall from the previous close because the market had begun the day with a gain.

Nearly six stocks fell for every one that rose

RTI Business's late morning figures showed almost six declining stocks for every advancing stock: 597 against 102. Falling shares accounted for about 76% of the 784 stocks classified as rising, falling or unchanged in that snapshot.

Earlier figures also showed widespread selling. At 9:41 a.m., 445 stocks had fallen, 176 had risen and 174 were unchanged among 795 traded shares. By 9:54 a.m., exchange data showed 512 decliners, 156 gainers and 295 unchanged stocks.

Trading activity expanded as the morning progressed. Transaction value rose from Rp694.36 billion at the opening to about Rp1.89 trillion at 9:21 a.m., Rp3.14 trillion at 9:54 a.m. and Rp5.01 trillion by 11:02 a.m.

Between the 9:54 a.m. and 11:02 a.m. readings, traded value increased by Rp1.87 trillion and volume rose from 8.14 billion to 12.55 billion shares. More shares were changing hands while the benchmark moved lower, leaving investors with fewer places to avoid the decline.

Large companies exerted the strongest pull

Bank Central Asia, trading under the ticker BBCA, accounted for a reduction of 16.03 index points in a first session contribution tally. Astra International, or ASII, subtracted 7.34 points, followed by Bank Rakyat Indonesia, or BBRI, at 5.92 points.

Telkom Indonesia reduced the benchmark by 4.63 points and Barito Renewables Energy by 4.10 points. Together, those five companies accounted for 38.02 points of downward pressure in that tally. Bank Central Asia's contribution alone was more than twice Astra's.

M Nafan Aji Gusta, senior technical analyst at Mirae Asset Sekuritas, attributed the retreat mainly to selling in those five large companies. Their size matters because the IHSG gives greater influence to companies with larger stock market values. A decline in a major bank can therefore move the benchmark more than a larger percentage loss in a small company.

Other companies subtracting index points included Bumi Resources Minerals at 3.68 points, Sinar Mas Multiartha at 3.67, Barito Pacific at 3.22, MORA at 3.15 and Amman Mineral Internasional at 3.06.

Bank Central Asia and Amman Mineral had appeared among stocks cushioning the decline in an earlier snapshot before appearing among the companies pulling the index lower. Their changing roles illustrate how the selling developed during the session.

Infrastructure shares and several individual stocks slide

Infrastructure was among the weakest sectors. Refinitiv data put its decline at 1.7% early in the morning and 4.6% near the 9:59 a.m. update; another first session snapshot recorded a 2.75% infrastructure decline, alongside losses of 2.35% for industrial companies and 2.02% for basic materials.

The Refinitiv snapshot near 9:59 a.m. also showed basic materials falling 1.9% and consumer staples losing 1.6%. Earlier readings had shown technology down 1% and financial companies down 0.4%, indicating pressure across several parts of the market.

By about 11:02 a.m., Petrindo Jaya Kreasi, or CUAN, had fallen 6.94% to Rp402 per share. Barito Pacific, or BRPT, was down 6.48% at Rp1,155, while Solusi Sinergi Digital, or WIFI, lost 6.47% to Rp940. Indosat, or ISAT, declined 6.69% to Rp1,465.

The LQ45 index stood at 529.03 at 9:41 a.m., down 2.35% from its opening level. That measure tracks 45 selected shares with substantial trading activity, giving another view of the pressure on prominent Indonesian stocks.

Some shares still attracted buyers

Temas, trading as TMAS, rose 12.73% to Rp124 at 9:41 a.m. among the 100 stocks with the highest transaction values, each of which had traded at least Rp1 billion. Kokoh Exa Nusantara, or KOCI, gained 6.76% to Rp79, and Koka Indonesia, or KOKA, advanced 5.07% to Rp145.

Within the same group, Trimegah Karya Pratama, or UVCR, fell 7% to Rp186. Energi Mega Persada, or ENRG, dropped 6.99% to Rp665, while Abadi Nusantara Hijau Investama, or PACK, lost 6.88% to Rp352.

Temas also appeared among the companies helping to cushion the benchmark's decline later in the morning. Investors were still buying selected stocks, even as the much larger number of falling shares pulled the broader market down.

Foreign selling and MSCI uncertainty weigh on confidence

Nafan identified continued foreign net selling and uncertainty surrounding MSCI's evaluation as risks to further losses. Net selling means investors sold more shares than they bought over the period being measured.

Market concern included the possibility that MSCI could move Indonesia to its Standalone Market category. MSCI's classifications help determine how countries are represented in investment benchmarks used by international funds. A classification change can affect which funds hold a country's shares and how much money they allocate.

No final MSCI decision, implementation date or amount of foreign net selling was specified in the session updates. Investors were also watching reforms to capital market governance by the Financial Services Authority, known as OJK, and the institutions responsible for operating and supervising the market.

For Indonesian companies, sustained selling can reduce stock market valuations and make raising money through new shares less attractive. For shareholders, Thursday's immediate effect was simpler: falling prices reduced the market value of their holdings, especially in the large companies driving the index lower.

US borrowing costs keep global markets under pressure

The US Federal Reserve held its benchmark interest rate at 3.75% to 4.00%, with Lisa Cook and Beth Hammack supporting an increase of 25 basis points. A basis point is one hundredth of a percentage point, so their preferred increase was 0.25 percentage points.

Fed Chair Kevin Warsh said inflation remained high and did not signal the next policy move. He also described a stronger US economy, with growth for the first half of 2026 revised to 2.4%, while the central bank continued working toward its 2% inflation target.

Market pricing put the probability of a December rate increase at about 80%, and the yield on US Treasury debt maturing in 10 years reached 5.042%. Higher US bond yields can draw money toward dollar investments and make borrowing more expensive internationally.

Nafan also pointed to concerns about the cost of artificial intelligence investment, corporate debt and refinancing. Refinancing means replacing debt that is coming due with new borrowing. When interest rates are high, that replacement can cost a company more.

Technology shares showed mixed performance abroad. Samsung Electronics fell more than 5% after its third quarter operating profit missed expectations, while Alphabet dropped 10% in trading after regular market hours. Microsoft and Oracle performed positively. Nafan also cited tensions involving Iran and oil above US$100 a barrel as pressures on inflation and financing costs.

Evening announcements set the next checkpoints

US Personal Consumption Expenditures inflation figures for September were scheduled for 7:30 p.m. Jakarta time on October 29. The PCE measure tracks changes in the prices of goods and services bought by consumers and is a central inflation gauge for the Federal Reserve.

Core PCE inflation, which excludes food and energy, was forecast to rise 0.3% from the previous month, compared with 0.2% in August. Its annual rate was expected to increase to 3.1% from 3.0%. August's broader PCE inflation rate had been 3.4%.

US initial unemployment claims for the week ending October 24 were also due. The previous release showed claims falling by 6,000 to 194,000 for the week ending October 17, below the expected 200,000 and the lowest since the middle of July. Low claims suggest relatively few people are newly seeking unemployment support.

The European Central Bank was scheduled to announce its rate decision at 8:15 p.m. Jakarta time, followed by a press conference at 8:45 p.m. Expectations were for its main refinancing rate to remain at 2.65% and its deposit rate at 2.50%.

Those announcements were due after Indonesia's daytime trading. Inflation readings and central bank comments would give investors fresh information about borrowing costs, currencies and the pressure on companies already facing expensive energy and debt.

Key Points

• The IHSG fell 2.55% to 5,147.36 at about 11:02 a.m. Jakarta time on October 29, after opening higher.
• RTI Business recorded 597 declining shares, 102 advancing shares and 85 unchanged shares.
• Trading reached Rp5.01 trillion across 12.55 billion shares and 680,264 transactions.
• Bank Central Asia, Astra, Bank Rakyat Indonesia, Telkom and Barito Renewables were major contributors to the decline.
• Foreign selling, MSCI classification uncertainty and high global borrowing costs weighed on confidence.
• US inflation data and the European Central Bank's rate decision were the next scheduled international checkpoints.