IHSG drops 2.3% to 5,247 as afternoon selling hits banks

Key takeaways

• The IHSG was at 5,247.33 at 07:36 UTC on Tuesday, October 27, about 2.3% below Monday's close of 5,373.10, based on Yahoo Finance intraday data.
• Almost all of the loss came in the afternoon session. The index had ended the morning session only 0.32% lower at 5,355.65.
• No single trigger for the afternoon slide has been confirmed. Local media point to Middle East tensions, weak utilities and technology stocks, and the Indonesia Stock Exchange's new index rules.
• Some data feeds show a fall of about 3.5% because they still compare with Friday's close of 5,439.26, not Monday's.

Why the IHSG drops 2.3% on Tuesday afternoon

Indonesia's IHSG drops about 2.3% to 5,247.33 at 07:36 UTC on Tuesday, October 27, extending losses for a second straight day. Almost all of the fall came after the midday break, and no single trigger has been confirmed.

The IDX Composite started the day slightly weaker and briefly turned positive in the first hour, reaching an intraday high of 5,418.14, according to CNBC Indonesia. It then drifted lower through the morning. Kontan and Bloomberg Technoz both reported a session-one close of about 5,355, down 0.32%, with infrastructure, technology and transportation stocks the weakest sectors.

What happened

The real damage came after the lunch break. CNBC Indonesia reported the index at 5,318.96 at 13:53 Jakarta time (06:53 UTC), down 1.01%. By 14:29 Jakarta time (07:29 UTC) it was at 5,265.50, down 107.60 points or 2.00%, the outlet said in a separate update. Yahoo Finance data showed the slide continuing to 5,247.33 at 07:36 UTC, with a session low of 5,245.97.

Data as of 07:36 UTC, October 27, 2026. Percentage for 07:36 UTC calculated by Bullquill against Monday's close.

Per Refinitiv data cited by CNBC Indonesia, utilities fell 3.6% and technology 2.5% by 06:53 UTC, while energy slipped 0.9%. The heaviest drags on the index at that point were Telkom Indonesia (TLKM), Bank Mandiri (BMRI), Bank Rakyat Indonesia (BBRI), DCI Indonesia (DCII) and Barito Renewables Energy (BREN). Astra International (ASII) and United Tractors (UNTR) were among the few large stocks holding the index up.

What we know and what we don't know yet

What we know

• The decline was concentrated after the midday break. The morning loss was small, and the index then fell more than 100 points from its midday level in the afternoon session.
• Large banks, telecoms and data-centre stocks did much of the damage, rather than a broad collapse in small caps.
• The Indonesia Stock Exchange has announced tighter market supervision, including freezing accounts suspected of violations and fewer trading suspensions. Stocks in its High Shareholding Concentration (HSC) category will be excluded from the IHSG calculation from November 2, 2026, CNBC Indonesia reported.
• CNBC Indonesia also cited Middle East tensions and disruption to shipping through the Strait of Hormuz as background risks. Brent crude fell 0.8% to $115.81 a barrel on Monday, the outlet said.

What we don't know yet

• No exchange statement, company announcement or central bank action has been identified that explains the timing of the afternoon fall.
• Foreign investor flows for Tuesday had not been published at the time of writing.
• The closing level is not yet known. The figures above are intraday and may change before the session ends.

A note on the numbers: some market data screens showed a fall of about 3.5% to around 5,250. That figure compares Tuesday's price with Friday's close of 5,439.26 and skips Monday's 1.2% loss. Measured against Monday's close, the decline was about 2.3% at 07:36 UTC.

Background

Indonesian stocks have been under pressure since mid-October, when index provider MSCI opened a consultation on moving Indonesia from Emerging Market to Standalone status. That plan, and the foreign selling that followed, is covered in our explainer on Indonesia's capital flows and the MSCI review and in our report on IHSG foreign selling.

The index recovered part of that loss in the week to October 23, then fell again on Monday, as we reported in IHSG falls 1.2% as midmorning selling erases gain. The rupiah is also trading close to record lows against the dollar; see our rupiah report. Global investors are also watching the US Federal Reserve's October decision, explained in what the Fed's October meeting could bring.

What it means

Tuesday's move shows how fragile sentiment remains in Jakarta. A small morning loss turned into a 2%-plus slide after the midday break, led by heavyweight banks and telecoms. Moves of this kind are more likely when foreign investors are cautious and the MSCI decision is still months away.

The new exchange rules matter for how the index itself is built. Removing HSC stocks from the IHSG from November 2 will change which companies count toward the benchmark. Investors may be adjusting positions ahead of that date, although no source has yet tied Tuesday's selling directly to it.

Key things to watch are the official close, Tuesday's foreign flow data from the exchange, the rupiah, and any statement from the Indonesia Stock Exchange or the Financial Services Authority (OJK). Bullquill will update this report if a cause is confirmed.

This article is for information only and is not investment advice.