Indonesia's IHSG Falls 3.78% to 4,904 as Bank Losses Deepen After Index Rule Change

Large banks lead another sharp retreat

Indonesia's benchmark stock index fell 192.54 points, or 3.78%, to 4,904.29 on Tuesday, November 3, 2026, as losses in major banks deepened a broad market retreat. Bank Rakyat Indonesia alone took 26.58 points off the Jakarta Composite Index, known locally as the IHSG, on the second trading day after new rules excluded stocks with highly concentrated ownership.

Stockbit's market commentary put foreign net outflows for the day at Rp575 billion. It identified Bank Rakyat Indonesia, Bank Central Asia, Amman Mineral Internasional, Bank Mandiri and Telkom Indonesia as the five largest contributors to the decline. Together, they accounted for 71.49 points, about 37% of the benchmark's total loss.

The selling reached far beyond those companies. RTI recorded 624 stocks falling, 57 rising and 37 unchanged at the close, nearly 11 declining stocks for every advancing share. Every sector finished lower, according to Refinitiv sector data.

Tuesday's retreat came despite a sharp fall in oil prices a day earlier, usually welcome news for Indonesia because it imports more oil than it exports. The rupiah also remained close to its weakest recorded level, while government borrowing yields stayed elevated.

Stockbit said the precise driver of the day's decline was still unclear and described foreign outflows below Rp1 trillion as relatively modest. The market faced several pressures at once: a changed index composition, concern over Indonesia's standing with global index provider MSCI, uncertainty surrounding the US election and renewed risks to peace talks involving Iran.

An early gain turns into a fall below 5,000

The IHSG opened at 5,126.53 and briefly reached 5,143.58 before selling took control. It fell through 5,000 before 11 a.m. Jakarta time and ended close to the day's low of about 4,895.

From its early peak to the closing level, the benchmark lost 239.29 points, or about 4.65%. That was a larger fall than the reported daily decline because the session had begun above the previous closing level.

• At the opening on November 3, the IHSG stood at 5,126.53 before reaching 5,143.58.
• At the first session's close, RTI recorded 4,963.06, down 133.77 points, or 2.62%.
• At 1:45 p.m. Jakarta time, the index stood at 4,942.31, down 3.03%.
• By the close, the benchmark had fallen to 4,904.29, a decline of 3.78%.

Trading totals varied between data services. Stockbit figures put turnover at Rp10.22 trillion across 226.69 million lots, while RTI recorded Rp11.43 trillion across 24.72 billion shares and about 1.38 million transactions. A standard Indonesian share lot contains 100 shares, making the Stockbit volume equivalent to 22.669 billion shares.

The new index rules put major stocks in focus

The Indonesia Stock Exchange, known as BEI, began excluding shares designated as having high shareholding concentration, or HSC, from the IHSG on November 2. HSC describes a situation in which a limited group of investors controls a large proportion of a company's shares.

The HSC exclusion decision covered 80 stocks estimated to represent about 18% of the benchmark's weight before the change. Those shares remain listed and can still be traded, but their price movements no longer contribute to the IHSG while they carry the designation.

BEI retained its existing calculation method, which adjusts company values for shares available to public investors and limits an individual stock's weight to 9%. Removing one group of companies changes how the remaining stocks contribute to the index, giving investors a different mix of businesses behind the headline number.

Tuesday's largest contributors show where the pressure landed. BBRI subtracted 26.58 points, BBCA 13.04, AMMN 11.86, BMRI 10.90 and TLKM 9.11. Their combined contribution exceeded one third of the total fall, with losses elsewhere accounting for the rest.

Materials and property suffer the biggest sector losses

Basic materials fell 5.69%, making it the weakest sector, followed by property and real estate at 5.16%. Energy dropped 4.29%, consumer cyclicals lost 3.13% and financials declined 3.09%.

Consumer cyclicals are businesses whose sales tend to move with household spending, such as retailers and sellers of discretionary goods. Their decline, alongside banks, materials and property, showed that the retreat spread across companies serving different parts of the economy.

RTI's closing breadth figures put falling stocks at about 87% of the 718 shares classified as rising, falling or unchanged. At the first session's close, 542 stocks had fallen and 94 had risen. By the end of trading, the number of decliners had increased to 624 and the number of gainers had shrunk to 57.

The LQ45 index, which tracks a group of large, actively traded shares, was already down 2.5% at the first session's close. Its weakness added to the picture of selling across prominent companies rather than a decline confined to smaller stocks.

Foreign investors sell banks and resource companies

Foreign investors recorded net selling of Rp831.55 billion across all markets during the first session, according to Stockbit figures. Purchases totalled about Rp1.61 trillion and sales about Rp2.44 trillion. By the end of the day, Stockbit put net outflows at Rp575 billion, a smaller total than at midday.

Net selling means an investor group sold more shares by value than it bought. The change between the first session and the closing figure indicates that the day's foreign balance became less negative during the afternoon, even as the benchmark continued falling.

BBRI led foreign net selling in the first session at Rp173.45 billion, followed by TLKM at Rp95.77 billion and Aneka Tambang, or ANTM, at Rp69.40 billion. Together, those three accounted for Rp338.62 billion, about 41% of the first session's net foreign sales.

Resource and industrial shares also featured prominently. Foreign net sales reached Rp59.93 billion in Bumi Resources and Rp54.46 billion in Chandra Asri Pacific. Darma Henwa, Barito Pacific, Dian Swastatika Sentosa, Timah and Petrosea were among the other companies recording foreign selling.

Some banks still attract foreign purchases

Bank Syariah Indonesia, or BRIS, led first session foreign net buying at Rp37.87 billion. Bank Mandiri followed at Rp27.88 billion and Bank Negara Indonesia at Rp16.63 billion. Foreign investors therefore continued buying selected banking shares while selling others.

Bank Mandiri appeared on both the foreign net buying list and the list of stocks dragging down the IHSG. Foreign purchases form only part of trading in a stock; its price reflects transactions involving domestic investors as well.

Outside banking, foreign investors recorded net purchases of Rp13.42 billion in Puradelta Lestari and Rp12.34 billion in Indofood CBP Sukses Makmur. GoTo Gojek Tokopedia attracted Rp8.07 billion, while Indosat received Rp6.51 billion.

Astra Agro Lestari, Adaro Andalan Indonesia and Industri Jamu dan Farmasi Sido Muncul also recorded smaller foreign net purchases. The buying was selective, while the much broader balance of rising and falling stocks remained heavily negative.

Oil relief fades as Iran risks return

Brent crude fell 7.63% to US$104.77 a barrel on Monday, November 2, while US West Texas Intermediate dropped 7.36% to US$96.46. The fall followed hopes for progress toward ending the war involving the United States, Israel and Iran after talks involving Iranian and Qatari officials.

Iranian President Masoud Pezeshkian said Tehran would seek to resolve the conflict through dialogue. US President Donald Trump also said an agreement to end the war might be possible.

For Indonesia, cheaper oil can reduce the cost of imports and ease pressure on government spending and consumer prices. That matters because the country is a net oil importer: it buys more oil from abroad than it sells overseas.

By Tuesday afternoon, Brent had rebounded about 0.9% to US$105.70 a barrel. Stockbit said prospects for renewed negotiations had weakened after a US military attack on Iran's Qeshm Island. Investors were therefore weighing Monday's lower oil prices against fresh concern about the conflict.

The energy sector's 4.29% decline also showed that cheaper crude carried different consequences across the market. Lower import costs can help the wider economy while lower commodity prices can reduce the revenue outlook for businesses selling those commodities.

The rupiah and bond market remain under pressure

The rupiah closed at 18,148 per US dollar, according to Stockbit, roughly 0.2% from its record weakest level of 18,183 on October 28. A weaker rupiah makes purchases priced in dollars more expensive in local currency, including oil imports.

Indonesia's government bond yield for debt maturing in 10 years reached about 7.81% during trading on November 2, its highest level since May 2020. It eased to about 7.72% by Tuesday's close.

A bond yield is the return available at its current market price. Yields generally rise when bond prices fall. Higher yields can translate into more expensive borrowing when the government issues new debt, while also giving investors an alternative to holding shares.

The Financial System Stability Committee, or KSSK, was scheduled to meet and hold a press conference on November 3 to discuss financial conditions in the third quarter. Investors were watching for its assessment of stock market losses, rupiah weakness and recent capital market rules. Inflation data were another domestic focus.

Stockbit described Tuesday's share decline as the deepest since October 16, when MSCI began consulting on a proposed downgrade of Indonesia to standalone market status. Such a classification would place Indonesia outside MSCI's main developed, emerging and frontier market groupings, a concern for investors whose portfolios follow those categories.

US voting and China data add to a difficult backdrop

US midterm elections took place on November 3, with Democrats seeking control of Congress against President Trump's Republicans. The University of Florida Election Lab counted more than 57 million early votes by Monday, compared with 46 million in the 2022 midterms, an increase of more than 11 million.

Congress helps decide US laws and spending, so its political composition matters to investors assessing future economic policy. The Indonesian trading session unfolded while that election uncertainty was still part of the global backdrop.

China's manufacturing figures offered a more encouraging signal. The RatingDog manufacturing Purchasing Managers' Index registered 52.0 in October, slightly below September's 52.1 but above the market forecast of 51.6. A reading above 50 indicates expanding activity.

October marked an 11th consecutive month of expansion. Production grew at its fastest pace in six months, supported by new orders and product launches. Export demand also increased, although more slowly than in September.

The IHSG's losses extended an already severe retreat. RTI put its monthly decline at 20.81%, its fall since the start of 2026 at 43.28% and its decline over the preceding year at 39.59%. Tuesday followed the October 29 market retreat, when the index had fallen 2.55% by late morning as selling spread across major stocks.

Key Points

• The IHSG closed at 4,904.29 on November 3, down 192.54 points, or 3.78%.
• BBRI, BBCA, AMMN, BMRI and TLKM together accounted for about 37% of the index's loss.
• RTI recorded 624 falling stocks against 57 gainers, while every sector declined.
• Stockbit put foreign net outflows at Rp575 billion for the day, compared with Rp831.55 billion during the first session.
• The fall came one day after BEI began excluding HSC shares from the benchmark.
• The rupiah closed near its record weakest level, while renewed Iran risks complicated the benefit of lower oil prices.