Indonesia Market Drops 8.7 Billion Dollars on Foreign Selling
The Jakarta Composite Index fell 1.43% this week. Foreign investors sold 690.19 billion rupiah of local equities.
The Jakarta Composite Index dropped 1.43% in the week ending September 11. The benchmark closed at 6,541.377, down from 6,636.475 the previous week. This decline marks the second consecutive week of losses for Indonesian equities. Total market capitalization on the Indonesia Stock Exchange fell 1.32% to 11,446 trillion rupiah. That figure equates to approximately 696 billion dollars.
Trading activity weakened significantly during the period. Average daily turnover decreased 14.88% to 16.36 trillion rupiah. Average daily volume dropped 26.34% to 36.09 billion shares. The average number of daily transactions declined 7.07% to 2.22 million. These metrics indicate a sharp contraction in market liquidity.
Foreign Capital Flows Outward
Foreign investors recorded net selling of 690.19 billion rupiah on the final trading day. Cumulative net foreign selling for 2026 reached 71.42 trillion rupiah. According to GN auto markets/indices: stock index data, this outflow reflects shifting global risk appetites. The exit of international capital exerted direct downward pressure on share prices.
Rising geopolitical tensions between the US and Iran contributed to the sell-off. Conflicts around the Strait of Hormuz pushed crude oil prices higher. West Texas Intermediate and Brent crude both exceeded 100 dollars per barrel. These energy price spikes revived concerns about a global inflation shock. Higher input costs dampened investor sentiment in emerging markets like Indonesia.
Domestic Indicators Show Resilience
Bank Indonesia reported that foreign-exchange reserves rose to 146.5 billion dollars by the end of August. This amount covers 5.4 months of imports. The increased reserves provide a buffer for the rupiah. They support broader macroeconomic stability despite external pressures.
Bank Mandiri announced an interim dividend totaling 6.16 trillion rupiah. The move underscores the financial strength of the country’s largest lender. Consumer confidence also improved in August. The Bank Indonesia consumer confidence index rose 1.7 points to 118.5. This figure reverses a four-month decline that lasted from April through July.
