Flooring Guide by Cinvex – , JAKARTA — The Jakarta Composite Index (IHSG) experienced a significant downturn in trading today, Friday, October 17, 2025. Despite this slump, foreign capital flowed robustly into the Indonesian stock market, registering a substantial net buy of Rp3 trillion.
According to data from the Indonesia Stock Exchange (BEI), the IHSG closed down 2.57% at 7,915.66. Throughout the trading day, the index touched a low of 7,854.31 and peaked at 8,140.60, indicating considerable volatility before settling lower.
The day concluded with a total transaction value reaching Rp28.43 trillion, involving 39.47 billion shares traded across 2.66 million transactions. The overall market capitalization of the Indonesian capital market stood at an impressive Rp14,746 trillion.
In today’s trading session, the market saw a broad decline, with 617 stocks weakening. In contrast, 135 stocks managed to strengthen, while 204 stocks remained unchanged, highlighting the prevailing bearish sentiment.
Nonetheless, the Indonesian stock market witnessed a powerful surge of foreign capital inflow. Foreign investors recorded a net buy of Rp3.03 trillion today, significantly offsetting the year-to-date foreign net sell in 2025, which now stands at Rp51.54 trillion.
Analysts Reveal the Cause of IHSG’s 2.57% Slump Below 8,000
Several key stocks were actively targeted by foreign investors today. Shares of PT Bank Central Asia Tbk. (BBCA), for instance, recorded a foreign net buy of Rp242.23 billion. Following closely, PT Merdeka Gold Resources Tbk. (EMAS) saw a foreign net buy of Rp182.8 billion, and PT Aneka Tambang Tbk. (ANTM) attracted a foreign net buy of Rp132.03 billion. Additionally, PT Rukun Raharja Tbk. (RAJA) also benefited from foreign interest, registering a net buy of Rp106.11 billion in today’s trading.
Angga Septianus, Community and Retail Equity Analyst Lead at PT Indo Premier Sekuritas (IPOT), explained that the Indonesian stock market was primarily pressured by escalating trade tensions between China and the United States. “Trade war tensions flared up again after October 10, when China restricted rare earth mineral exports. US President Donald Trump responded to these restrictions by stating that he would impose 100% tariffs on China starting November 1,” Angga elaborated.
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From a technical perspective, Nafan Aji Gusta, Senior Market Analyst at Mirae Asset Sekuritas Indonesia, noted that the IHSG is anticipated to have limited upside due to a prevailing consolidation phase. While the MA20 & MA60 indicators tend to strengthen, Stochastics and RSI remain in negative territory. “The US government shutdown and ongoing US-China trade tensions continue to shape market sentiment,” Nafan added.
Meanwhile, optimism for a potential cut in the Fed Fund Rate by the end of October continues to grow. Domestically, market participants eagerly await the release of Q3/2025 Foreign Direct Investment (FDI) data, which is projected to contract. This contraction is expected to influence the short-term movement of the IHSG.
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Summary
The Jakarta Composite Index (IHSG) closed down 2.57% at 7,915.66 on Friday, October 17, 2025, experiencing significant market volatility throughout the day. Despite this downturn, foreign investors robustly injected capital, recording a substantial net buy of Rp3.03 trillion into the Indonesian stock market. Prominent stocks like PT Bank Central Asia Tbk. (BBCA) and PT Merdeka Gold Resources Tbk. (EMAS) were actively targeted by foreign capital.
Analysts attributed the IHSG’s decline primarily to escalating trade tensions between China and the United States, alongside the US government shutdown. Technically, the index faces limited upside due to a consolidation phase, with Stochastics and RSI indicators remaining negative. Market participants are also anticipating a projected contraction in Q3/2025 Foreign Direct Investment (FDI) data, though optimism exists for a potential Fed Fund Rate cut by the end of October.