IHSG Falls 1.99% on Oct 27, 2026 as Foreign Selling Deepens

Key takeaways

• The Jakarta Composite Index (IHSG) fell 106.96 points, or 1.99%, to 5,266.13 on Tuesday, October 27, 2026, its second straight loss, according to IDX closing data reported by Kontan, CNBC Indonesia and IDX Channel.
• The LQ45 index of large, liquid stocks fell 9.14 points, or 1.69%, to 533.02, according to Investing.com and Yahoo Finance data.
• The rupiah weakened 0.12% to 18,156 per US dollar in the spot market, near its weakest level since June, Kontan reported; Bank Indonesia's JISDOR reference rate rose to 18,139.00.
• Foreign investors sold a net Rp2.25 trillion in the regular market by the midday break, IDX Channel reported, as worries over a possible MSCI downgrade persisted.
• Ten of 11 sector indices fell. Energy (−3.33%), basic materials (−3.32%) and technology (−3.16%) led losses; industrials (+1.43%) was the only gainer, Kontan reported.

Session recap

Indonesian stocks fell 1.99% on Tuesday after a sharp sell-off in the afternoon session wiped out an early rebound. For the wider regional picture, see Asian and global markets today; Monday's session is covered in our IHSG brief for October 26.

The index opened at 5,357.97 and climbed to an intraday high of 5,418.14 in the first session, according to CNBC Indonesia. Kontan reported that the IHSG was up 0.67% at 5,409 shortly after the open, tracking gains elsewhere in Asia. It slipped into the red before the midday break, then fell hard after about 14:00 Jakarta time (07:00 UTC). CNBC Indonesia said the index was down 3.01% at 5,211.28 at 15:00 Jakarta time and touched a low of 5,182.37 around 15:30 (08:30 UTC), before recovering part of the drop into the close.

Changes are calculated from the previous closes: IHSG 5,373.09 and LQ45 542.16 on October 26, spot rupiah 18,135 on October 26, and JISDOR 18,116.00 on October 26. A higher USD/IDR number means a weaker rupiah.

Selling was broad. IDX Channel counted 647 decliners against 101 gainers, with 215 stocks unchanged; other outlets reported slightly different counts. Turnover was Rp17.14 trillion on 34.76 billion shares across about 1.89 million trades, according to IDX Channel. Among LQ45 members, Kontan listed Darma Henwa (DEWA, −6.92%), Merdeka Battery Materials (MBMA, −6.78%) and Solusi Sinergi Digital (WIFI, −6.73%) as the biggest losers. United Tractors (UNTR, +6.00%), ESSA Industries Indonesia (ESSA, +3.88%) and Charoen Pokphand Indonesia (CPIN, +2.58%) were the biggest gainers.

What drove it

Foreign selling and the MSCI question

Foreign investors kept leaving. IDX Channel reported a net foreign sale of Rp2.25 trillion in the regular market up to the first-session break, and linked the selling mainly to MSCI's October 16 statement that Indonesia could be moved to "Standalone" market status. A full-day foreign flow figure had not been confirmed by two sources when this brief was written. Iding Pardi, development director at the Indonesia Stock Exchange (IDX), told reporters on Tuesday that the continuing outflow reflects investor confidence that remains a challenge, CNBC Indonesia reported. Our analysis of foreign selling and the MSCI review explains the background.

Rupiah, bond yields and fiscal worries

Indo Premier Sekuritas research, cited by CNBC Indonesia, said investors were reacting to higher bond yields, a weaker rupiah and the threat of an MSCI downgrade. CNBC Indonesia reported that Indonesia's 10-year government bond yield reached 7.52%, the highest since November 2022. Sutopo Widodo of HFX International Berjangka told Kontan that the US dollar remained strong ahead of the Federal Reserve's decision and that high oil prices had raised fiscal concerns at home. Our report on the rupiah near its record low looks at the currency in more detail.

Risk appetite and technical selling

Mirae Asset Sekuritas Indonesia pointed to aggressive foreign selling of large caps, a higher risk premium and weaker investor confidence in the domestic market, CNBC Indonesia reported. It also cited profit-taking, broken support levels and cut-loss selling. IDX Channel noted that the IHSG had rebounded for four straight sessions before Monday, leaving room for a pullback.

Oil and the Middle East

Commodity-linked stocks fell even though crude eased. CNBC Indonesia reported that Brent fell 0.8% to US$115.81 a barrel and WTI fell 1.46% to US$101.76 on hopes of de-escalation in the Middle East, while warning that renewed attacks remained a risk. Indonesia is a net oil importer, so high crude prices weigh on its budget and currency.

Political & policy watch

• Exchange rules. The IDX plans to tighten market supervision and will exclude stocks in its High Shareholding Concentration (HSC) category from the IHSG calculation from November 2, 2026, CNBC Indonesia reported. Iding Pardi said enforcement should deter violations without scaring off good-faith investors.
• MSCI status. MSCI said on October 16 that Indonesia could be reclassified as a Standalone market, IDX Channel reported. MSCI has not announced when it will decide.
• Budget pressure. Kontan reported market concern over the cost of a proposal for free education from elementary school to university, on top of the free meal program, at a time of high oil prices. September inflation was 3.28%, the highest in three months, Kontan said.
• Bank Indonesia. Kontan reported that the central bank is intervening in the currency market. Bank Indonesia held its policy rate in October; see our report on BI's October rate hold.

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 also depend on the rupiah. A weaker rupiah reduces dollar returns even when share prices are flat.
• Index reclassification: A change in MSCI market status can trigger large passive fund flows. Follow MSCI's own announcements rather than rumours.
• Intraday swings: Tuesday's range of more than 235 points shows how fast the index can move within one session.
• Foreign flow data: Session and full-day foreign flow figures often differ between data providers. Check the exchange's own data before drawing conclusions.
• Bond yields: Rising government bond yields raise borrowing costs and can make shares look less attractive by comparison.
• Scheduled events: Fed decisions, index rule changes and company results can cause sharp price gaps. Note the dates in advance.

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