Indonesian Stocks Decline 0.56% for the Week Amidst Foreign Sell-Off

Indonesia's Composite Stock Price Index (IHSG) experienced a downturn, closing the trading week of May 25-29, 2026, with a 0.56% decrease. The index settled at 6,162.04 points, a slight correction from its previous week's close. This decline occurred despite the Indonesia Stock Exchange (IDX) reporting several positive market indicators for the week.

While the overall index weakened, the IDX noted an increase in the average daily transaction value, which rose by 30.37% to Rp 28.38 trillion from Rp 21.77 trillion in the prior week. Market capitalization also saw a modest gain of 0.88%, reaching Rp 10,729 trillion from Rp 10,635 trillion. These figures suggest underlying market activity and investor interest despite the broader index's decline.

However, the trading volume and frequency metrics showed a downward trend. The average daily transaction frequency dropped by 10.87% to 2.11 million transactions, down from 2.37 million. Similarly, the average daily transaction volume decreased by 15.60% to 30.95 billion shares, compared to 36.67 billion shares in the previous week. This indicates a reduction in the number of shares traded and the number of transactions executed.

The week's market performance was significantly influenced by foreign investor activity. Foreign investors recorded a net sell of Rp 8.519 trillion by Friday, May 29, 2026. This outflow adds to the cumulative net sell by foreign investors throughout 2026, which now stands at Rp 53.971 trillion. The sustained selling pressure from foreign investors appears to be a key factor contributing to the IHSG's weakening position.