IHSG falls 1.2% to 5,374 as midmorning selling erases gain

Key takeaways

• The IDX Composite (^JKSE) stood at 5,374.87 at 02:54 UTC, down 1.18% from Friday's close of 5,439.26, based on Yahoo Finance data.
• Most of the drop came in about 15 minutes: the index slid from roughly 5,428 at 02:40 UTC to about 5,371 by 02:50 UTC.
• The index opened 0.06% higher, Antara and Bloomberg Technoz reported, so the morning erased an early gain.
• No news report reviewed by Bullquill names a single trigger for the sharp midmorning leg. The cause has not been confirmed.
• Background pressures include a weaker rupiah, Brent crude above $115 a barrel and heavy foreign selling last week, according to Bloomberg Technoz.

Indonesia's IHSG fell about 1.2% in Monday morning trade on October 26, sliding to 5,374.87 by 02:54 UTC (09:54 in Jakarta), according to Yahoo Finance. The drop reversed a small opening gain and came after a week in which the index rose almost 5%.

What happened: IHSG falls in midmorning trade

The session started calmly. The index opened at 5,442.30, up 3.04 points or 0.06% from Friday's close, Antara reported. It then moved back and forth around the previous close. According to detikFinance, citing RTI Business data, the index was 0.19% lower at 5,429.18 at 09:10 Jakarta time (02:10 UTC). Bloomberg Technoz put it 0.22% lower at 5,427 at 09:15 (02:15 UTC) and described quick swings between gains and losses.

The bigger move came later. Five-minute data from Yahoo Finance show the index near 5,434 at 02:35 UTC, then falling to 5,396.48 at 02:45 UTC and 5,370.65 at 02:50 UTC. The session low by 02:57 UTC was 5,367.81, against an intraday high of 5,453.65.

What we know

Rupiah and oil

The rupiah opened 0.29% weaker at 18,110 per US dollar and was at 18,085 by 09:08 WIB, Bloomberg Technoz reported. The outlet linked the currency's weakness to Brent crude at $115.28 a barrel and said yields on most Indonesian government bond tenors were rising. It listed the rupiah among the weakest Asian currencies in early trade.

Regional mood

Asian stocks were softer ahead of the busiest week of the earnings season, Bloomberg News reported via Bloomberg Technoz, with the MSCI Asia-Pacific index down 0.2% early on Monday after a Friday selloff in AI-related US stocks. Bloomberg Technoz noted that most regional benchmarks that had opened, including the Nikkei 225, KOSPI, Straits Times and Shanghai Composite, were lower. South Korea's market was also under pressure; see our report on the KOSPI's 1% fall on oil and Iran tensions.

Foreign flows

Foreign investors sold a net Rp8 trillion of Indonesian shares in the week of October 19-23 even as the index rose 4.91%, according to Bloomberg Technoz. It put regular-market foreign net selling in 2026 at Rp122.2 trillion, with Bank Central Asia (BBCA) and Bank Rakyat Indonesia (BBRI) the most sold last week. Monday's flow figures were not yet available at the time of writing.

What we don't know yet

• The cause of the drop between 02:40 and 02:50 UTC has not been confirmed. No exchange notice, regulator statement or newswire report reviewed by Bullquill ties it to a specific event.
• Which stocks and sectors led the slide, and whether foreign investors were net sellers this morning, had not been reported at the time of writing.
• It is not yet known whether the index will hold near this level into the end of the first session.

Background

The IHSG has been one of the world's most volatile major markets this month. On October 16 it fell 11.57% to 5,185.11, its worst day since 1998, after MSCI opened a consultation on moving Indonesia from Emerging Market to Standalone status, The Star reported. MSCI's consultation runs until April 30, 2027, with a decision due by June 30, 2027. Our explainer on Indonesia's capital flows and the MSCI Standalone review covers what is at stake, and our report on record IHSG foreign selling tracks the outflows.

The index then rebounded. detikFinance said it was up 8.72% over the past five trading days as of Monday morning but still down 37.18% in 2026. Our Indonesia stocks daily brief for October 23 covers Friday's 0.95% gain.

What it means

A 1.2% intraday move is large for most markets but modest for the IHSG this month. After a near-5% weekly rally driven mainly by domestic buyers while foreigners kept selling, the market remains sensitive to small shifts in sentiment. A weaker rupiah and oil above $115 a barrel add pressure on an energy-importing economy; our explainer on how oil price shocks hit inflation and rates explains why. Global central bank meetings this week, including the Federal Reserve's decision, are the next scheduled events. Until a cause is reported, the morning drop is best read as part of an already volatile market, not as a reaction to one confirmed headline.

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