The Jakarta Composite Index (JCI) faced a turbulent week, tumbling 8% to close at 6,162. Amid this market downturn, foreign investors executed a net sell totaling Rp 807 billion. While the index even dipped below the 6,000 mark on Friday (May 22), it managed a modest recovery, climbing 1.1% by the close of the final trading session.
Despite the market’s decline, data from the Indonesia Stock Exchange (IDX) revealed an uptick in trading activity. Trading volume rose by 2.53% to 36.67 billion shares, while total transaction value surged by 15.7% to Rp 21.77 trillion. Although domestic investors continued to dominate the market, the share of foreign investor participation increased from 33% the previous week to 41%, with foreign buy transactions hitting Rp 44.72 trillion against sell transactions of Rp 45.33 trillion.
According to data from Stockbit, foreign capital outflow remained heavily concentrated on major banking stocks. PT Bank Central Asia Tbk (BBCA) saw outflows of Rp 1.02 trillion, while PT Bank Mandiri Tbk (BMRI) experienced a sell-off totaling Rp 407.37 billion. Conversely, foreign investors showed interest in the mining sector, accumulating shares in companies such as PT Timah Tbk (TINS) for Rp 792.31 billion and PT Merdeka Copper Gold Tbk for Rp 688.44 billion.
Why the JCI Plunged 8%
The Indonesian stock market’s recent struggle coincides with the highly anticipated quarterly review of the FTSE Global Equity Index Series, which was scheduled for announcement on Friday (May 22) at 6:00 PM US time. The JCI has now plummeted by 30% year-to-date (ytd). This sharp decline is particularly notable considering the index reached an all-time high of 9,134 on January 20, 2026, boasting a market capitalization of Rp 16,590 trillion, which has since contracted to Rp 10,635 trillion.
Market jitters were fueled by signals that FTSE might exclude certain Indonesian stocks from its indices due to High Shareholding Concentration (HSC). The HSC list, published by the IDX to improve transparency and mitigate speculative risks while meeting global investor standards, identifies companies where the majority of shares are held by a limited number of parties or specific affiliate groups.
Summary
The Jakarta Composite Index (JCI) experienced a turbulent week, tumbling 8% to 6,162, although it recovered 1.1% by the close after briefly dipping below 6,000. During this period, foreign investors executed a net sell of Rp 807 billion, even as their overall market participation increased to 41%. Concurrently, trading activity saw a rise, with volume up 2.53% and transaction value surging by 15.7%.
Foreign capital outflows primarily targeted major banking stocks such as PT Bank Central Asia Tbk and PT Bank Mandiri Tbk, while foreign investors showed interest in mining companies like PT Timah Tbk and PT Merdeka Copper Gold Tbk. This market struggle, which saw the JCI plummet 30% year-to-date, coincides with the highly anticipated FTSE Global Equity Index Series quarterly review. Market jitters were further fueled by concerns that FTSE might exclude certain Indonesian stocks due to High Shareholding Concentration (HSC).