IHSG Falls 1.22% on Oct 26, 2026 as Rupiah Slides to 18,135

Key takeaways

• The Jakarta Composite Index (IHSG) fell 66.17 points, or 1.22%, to 5,373.09 on Monday, October 26, 2026, ending a four-day winning streak, according to IDX closing data reported by IDX Channel and CNBC Indonesia.
• The LQ45 index of large, liquid stocks fell 4.89 points, or 0.89%, to 542.16, according to Kontan.
• The rupiah weakened 0.30% to 18,135 per US dollar in the spot market, its weakest close since early June, Kontan reported; Bank Indonesia's JISDOR reference rate rose to 18,116.00.
• Every sector index fell. Infrastructure (−2.47%), energy (−2.36%) and technology (−2.06%) fell the most, according to IDX Channel and Kontan.
• Foreign investors were net sellers of Rp1.14 trillion in the regular market in the first session, led by Bank Central Asia (BBCA), Bloomberg Technoz reported.

Session recap

Indonesian stocks fell 1.22% on Monday as a weaker rupiah and higher oil prices hit sentiment after the IHSG's strong rally last week. For the wider regional picture, see Asian and global markets today; Friday's session is covered in our IHSG brief for October 23.

The index opened slightly higher at 5,442.30 and reached an intraday high of 5,453.65 early in the first session, according to CNBC Indonesia. Selling then took over, and the index hit a low of 5,349.75 before 10:00 Jakarta time (03:00 UTC). At the midday break it was down about 1% at 5,384. The second session brought no recovery. The index closed at 5,373.09, giving back part of last week's 4.90% gain.

Changes are calculated from the previous closes: IHSG 5,439.26 and LQ45 547.05 on October 23, spot rupiah 18,080 on October 23, and JISDOR 18,069.00 on October 23. A higher USD/IDR number means a weaker rupiah.

Selling was broad. IDX Channel counted 542 decliners against 174 gainers, with 247 stocks unchanged. Turnover was Rp14.74 trillion on 32.79 billion shares across about 1.78 million trades. Among LQ45 members, Kontan listed Solusi Sinergi Digital (WIFI, −6.73%), Merdeka Copper Gold (MDKA, −5.94%) and Merdeka Battery Materials (MBMA, −5.85%) as the biggest losers. Unilever Indonesia (UNVR, +1.79%), Bank Negara Indonesia (BBNI, +1.46%) and Adaro Andalan Indonesia (AADI, +1.32%) were the biggest gainers.

What drove it

A weaker rupiah and higher oil prices

Bloomberg Technoz linked the index's reversal to the rupiah's continued slide. It said the currency was under pressure from rising world crude prices. Kontan reported that most Asian currencies also weakened, with the Philippine peso down 0.54%. Indonesia is a net oil importer, so higher crude prices raise its import bill and the cost of fuel subsidies. That tends to weigh on the rupiah and on the government budget.

Middle East tensions

According to Warta Ekonomi, attacks by Yemen's Iran-aligned Houthis on targets in Saudi Arabia raised fears for shipping around the Red Sea and the Bab el-Mandeb Strait. The report said diplomatic talks involving Qatar, Iran, the US, Saudi Arabia, Turkey and Pakistan had raised hopes of easing tensions. However, remarks by US President Donald Trump kept the risk of escalation in view. South Korea's KOSPI also fell on Monday morning, with local media linking that move to oil prices and Iran tensions.

Foreign selling, led by big banks

Foreign investors kept selling. Bloomberg Technoz reported a net foreign sale of Rp1.14 trillion in the regular market in the first session. The largest amounts were in BBCA (Rp201.92 billion), Bank Mandiri (BMRI, Rp129.94 billion) and Bank Rakyat Indonesia (BBRI, Rp89.67 billion). A full-day figure had not been confirmed by two sources when this brief was written. Kontan said foreigners sold a net Rp8 trillion in the regular market during the October 19–23 week, even as the index rose. Our analysis of foreign selling and the MSCI review explains the background.

Profit-taking after a sharp rebound

The IHSG rose 4.90% in the week to October 23, Kontan reported. That left it open to a pullback once currency and oil risks returned. The broad drop across every sector, including the commodity-heavy energy index, suggests the move was driven by general risk appetite rather than news about one company.

Political & policy watch

• Fiscal pressure. Market analyst Ibrahim Assuaibi, quoted by Warta Ekonomi, said Indonesia's crude price (ICP) averaged US$91.9 a barrel through September, well above the US$70 assumed in the 2026 budget. He said fuel subsidy and energy compensation spending reached Rp376.8 trillion by September 30, up 54.1% from a year earlier. In his view, higher oil prices, a weaker rupiah and rising bond yields could shrink the government's fiscal room.
• Bank Indonesia. Bank Indonesia held its benchmark rate at 5.75%, and foreign exchange reserves stood at US$146.5 billion, Indo Premier Sekuritas analyst David Kurniawan noted in comments reported by Kontan. More detail is in our report on BI's October rate hold.
• Index rules and MSCI. The Indonesia Stock Exchange has said it will remove about 80 stocks with high shareholding concentration (HSC), worth around 18% of index weight, from the IHSG calculation, according to Bisnis and The Star. Kurniawan said market transparency and investability before MSCI's next index announcement remain concerns for foreign investors.

What to watch next

For how the Fed meeting could play out, see our explainer on the October Fed debate.

Risk checklist for readers

• Currency risk: For investors outside Indonesia, returns on IHSG stocks depend on the rupiah too. A 0.30% fall in the rupiah cuts dollar returns even when share prices are unchanged.
• Oil sensitivity: As a net oil importer, Indonesia's currency and budget are sensitive to crude prices and Middle East headlines. Moves can be sudden.
• Foreign flow data: Session and full-day foreign flow figures often differ between data providers. Check the exchange's own data before drawing conclusions.
• Index changes: The removal of HSC stocks from the IHSG calculation can change how the index behaves compared with past periods.
• Scheduled events: Fed decisions, US inflation data and company results can cause sharp price gaps. Note the dates in advance.
• Liquidity: Thinly traded small caps can move by limit-up or limit-down amounts in one session, which can make prices hard to exit at.

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