Foreign Investors Record Rp61.36 Trillion Net Sell in 2026

JAKARTA, JOURNALARTA.COM – Bursa Efek Indonesia (BEI) released trading data as of June 5, 2026, showing that foreign capital outflows continued at a sizeable pace. Year-to-date net sell by foreign investors had reached Rp61.36 trillion.

The selling pressure has become one of the main forces behind the sharp correction in the Jakarta Composite Index (IHSG), which fell 8.69 percent over the past week. Here is a full breakdown of the data, the drivers behind the selloff, its impact, and the steps authorities are taking to ease the strain.

Capital Flows and Index Movements

Foreign Net Sell Reaches Rp61.36 Trillion

During the June 2-5, 2026 trading period, foreign investors recorded daily net selling of Rp3.73 trillion. Accumulated from the start of the year through that date, total net sell reached Rp61.36 trillion.

That large figure has placed significant pressure on market performance. As a result, total market capitalization fell 8.59 percent to Rp9,807 trillion. Meanwhile, average daily transaction value came in at Rp26.97 trillion, down 5.71 percent from the previous week.

IHSG Drops 8.69 Percent in a Week

The IHSG closed trading on Friday, June 5, 2026, at 5,594.765. That marked a decline of 8.69 percent in just one week. The correction spread across nearly all large-cap stocks, or big caps.

Weakness continued into the next session. According to Mirae Asset Sekuritas, in early trading on Monday, June 8, 2026, the IHSG fell another 2.87 percent to 5,434.

The pressure was also felt in other financial markets. The rupiah came under strain and approached its weakest level against the US dollar, while the yield on 10-year government bonds rose to 7.27 percent, signaling higher risk premiums.

What Is Driving the Big Foreign Selloff

There are four main reasons foreign investors have chosen to reduce their exposure in Indonesia’s market:

1. MSCI Review Outcome

Since the warning issued by global index provider MSCI in January 2026, investor confidence has started to weaken. MSCI froze any increase in Indonesia’s weight in its index and threatened to downgrade the market from Emerging Market to Frontier Market if structural improvements are not made soon. Since that announcement, about US$370 billion in market value has been wiped out.

2. Rupiah Weakness

The rupiah has repeatedly hit record lows amid market concern over the state budget, influenced by tensions in the Middle East and the cost of implementing government programs. The weaker currency reduces the value of foreign investments when converted back into investors’ home currencies, prompting some to sell.

3. More Attractive SBN Yields

With government bond yields rising to 7.27 percent, foreign investors have been shifting funds into sovereign debt instruments that are seen as safer and offer more certain returns, rather than equities, which carry higher volatility and risk.

4. Global Economic Uncertainty

Tensions between the United States and Iran have pushed up global oil prices. At the same time, expectations that the US benchmark interest rate will stay elevated for longer are keeping global capital more cautious. In general, that environment tends to pull investment funds out of emerging markets, including Indonesia.

A Strange Contrast: Busy Trading, Lower Index

Interestingly, the index decline has not been matched by weaker trading activity. In fact, BEI data shows that transaction frequency and volume both increased:

• Average daily transaction frequency rose 14.11 percent to 2.41 million trades;
• Average daily transaction volume rose 8.66 percent to 33.63 billion shares;
• Regular market transaction value through the end of May 2026 reached Rp602.9 trillion, up 114.3 percent from the same period last year.

This suggests that even as foreign investors sell, the shares are being absorbed by domestic investors. BEI sees this as a sign that market liquidity remains intact and that market deepening is still underway, even though selling pressure continues to dominate price direction.

Impact on Stocks and Market Strategy

The Rp61.36 trillion outflow has left very limited room for the IHSG to move higher. Each time the index tries to rebound, foreign selling reappears and caps the gains.

The stocks most affected are issuers recently removed from the MSCI Global Standard index, such as Amman Mineral, Chandra Asri Pacific, and Dian Swastatika Sentosa. Shares in the banking and consumer sectors have also faced significant selling pressure.

Tan Altundag, an investment manager at Pictet Asset Management, said that although MSCI recently maintained Indonesia’s status as an emerging market, that alone is not enough to fully restore confidence.

“The conditions needed for investors to put money back here are still quite high,” he said, as quoted on Thursday (June 25).

What Authorities Are Doing to Slow the Outflow

To address the pressure, BEI, the Financial Services Authority (OJK), and the government have coordinated several strategic steps:

• Set a firm deadline for issuers to meet the minimum 15 percent free float requirement, with delisting threatened if they fail to comply;
• Tighten trade surveillance to detect and take firm action against coordinated or suspicious trading activity;
• Bank Indonesia and the Finance Ministry are coordinating to keep SBN yields stable and competitive;
• Ask institutional fund managers such as insurers, pension funds, and Danantara Indonesia to increase their domestic stock purchases to support market demand.

Mirae Asset Sekuritas, however, said the effectiveness of these measures remains limited because market conditions are also shaped by external factors that are hard to control.

Outlook Through the End of 2026

According to Goldman Sachs calculations, if Indonesia fails to improve conditions before the MSCI review in November 2026 and is downgraded, potential capital outflows could reach US$13 billion, or about Rp234 trillion.

Meanwhile, the target set by the government and BEI is to stop the net sell trend and turn it into net buying before the final MSCI review later this year. The main requirements are improved transparency in share ownership, compliance with free float rules, and a crackdown on unfair trading practices.

If reforms move according to plan, investor confidence could recover and funds may flow back in. If not, selling pressure is likely to continue, and possibly intensify.

Summary

The Rp61.36 trillion net sell figure is clear proof that Indonesia’s stock market still faces heavy challenges. The cause is not only external pressure, but also internal issues that have drawn scrutiny from international institutions.

November 2026 will be a crucial moment for BEI and all stakeholders to show progress on reforms. If they succeed, IHSG recovery prospects remain wide open. If they fail, the risk of a market downgrade becomes a real threat with broader consequences.

Frequently Asked Questions

Q: How much foreign net sell was recorded in 2026?

A: Rp61.36 trillion as of June 5, 2026.

Q: How much did the IHSG fall during that period?

A: It fell 8.69 percent in one week to 5,594.765.

Q: What are the main causes of the heavy selling?

A: The MSCI warning, rupiah weakness, higher SBN yields, and global economic uncertainty.

Q: When is the next MSCI review?

A: In November 2026.