Indonesia Stock Exchange index falls for fifth day amid foreign sell-off

The Indonesia Stock Exchange (IDX) has seen the Jakarta Composite Index (IHSG) enter a five-day losing streak, closing down 1.13% to 6,461.15 on Tuesday, September 15, 2026. This decline follows market volatility linked to the transition of the Finance Minister from Purbaya Yudhi Sadewa to Suahasil Nazara.

Foreign investors recorded a net sell of Rp349.3 billion during Tuesday's session. Large-cap banking stocks were the primary targets of these outflows, with PT Bank Mandiri (Persero) Tbk (BMRI) seeing the largest net foreign sell of Rp282.9 billion. Other significant sell-offs occurred in PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Bank Negara Indonesia (Persero) Tbk (BBNI), and PT Bank Central Asia Tbk (BBCA).

In response to market conditions, the IDX has begun the gradual reintroduction of short selling transactions following guidance from the Financial Services Authority (OJK). However, analysts have expressed concerns that implementing short selling alongside the reduction of minimum stock price limits—from Rp50 to Rp1—could increase market volatility and trigger extreme price movements.