Foreign investors sold off IDR 13.92 trillion in shares between January 26-30, 2026, with the largest sell-off reaching IDR 6.1 trillion following an announcement by MSCI. The Composite Stock Price Index (IHSG) was under pressure during this period, with foreign investor selling adding to the burden.
Indonesia's Composite Stock Price Index (IHSG) experienced downward pressure during the trading week of January 26-30, 2026, with foreign investor selling exacerbating the situation. According to an analyst, the sell-off was partly triggered by an announcement from MSCI.
Data from the Indonesia Stock Exchange (BEI) indicated that the IHSG fell by 6.34% to 8,329.60, with a weekly high of 9,058.04 and a low of 7,481.98. Market capitalization decreased by 7.37% to IDR 15,046 trillion from the previous week's IDR 16,244 trillion. The average daily transaction value on the BEI increased by 29.28% to IDR 43.76 trillion, while the average daily transaction frequency rose by 1.59% to 3.82 million transactions.
However, the daily transaction volume decreased by 3.69% to 63.3 billion shares. Foreign investors sold off IDR 13.92 trillion worth of shares during the week, exceeding the previous week's IDR 3.25 trillion. This brought the total foreign sell-off for 2026 to IDR 9.88 trillion.
The largest sell-off occurred on Wednesday, January 28, 2026, reaching IDR 6.17 trillion. This coincided with MSCI's announcement of a temporary freeze on index-related changes for Indonesian securities resulting from index reviews or corporate events. MSCI will freeze all increases to Foreign Inclusion Factors (FIF) and the number of shares (NOS), and will not implement index additions or upward migrations across indexes.
Foreign investor selling continued on Thursday and Friday, with sell-offs of IDR 4.63 trillion and IDR 1.53 trillion, respectively. The Head of Research at Kiwoom Sekuritas Indonesia noted that it was reasonable for most foreign investors, especially active global funds, to reduce or mitigate risk in response to these events.
- IHSG declined amid foreign investor sell-offs.
- MSCI's policy announcement contributed to investor unease.
- Significant capital outflow from Indonesian stocks.
- Increased volatility in trading volume and value.