Indonesia Stocks Plummet Among World’s Worst as Mirae Says Big Bank Shares Are Finally Cheap

JAKARTA, Investortrust.id — Indonesia’s stock market selloff deepened on Wednesday, with the Jakarta Composite Index closing down 0.82% at 6,318 after sliding 26.3% so far this year, making it one of the world’s worst-performing major indexes.

The rout has been amplified by relentless foreign selling. Offshore investors booked net sales of Rp13.3 trillion ($836 million) in January, Rp5.7 trillion ($358 million) in February, Rp10.5 trillion ($660 million) in March, Rp16.8 trillion ($1.06 billion) in April, and Rp4.9 trillion ($308 million) through mid-May.

Indonesia has turned into a major underperformer in emerging markets just as investors are reassessing risk across Asia. A sharp 50-basis-point Bank Indonesia rate hike to 5.25% and uncertainty over a new state-backed natural-resources export body added fresh volatility to a market already hit by foreign outflows.

Yet the selloff is opening a valuation window in big-cap banks, long considered the backbone of Indonesia’s equity market.

Mirae Asset Sekuritas Indonesia, a local brokerage arm of South Korea’s Mirae Asset group, said shares of Indonesia’s four largest banks — Bank Mandiri (BMRI), Bank Rakyat Indonesia (BBRI), Bank Central Asia (BBCA), and Bank Negara Indonesia (BBNI) — now look attractive by historical standards.

“Banking stock valuations are now at quite attractive historical levels because price-to-book values have corrected significantly and are approaching multi-year lows,” Martha Christina, Head of Investment Information at Mirae Asset Sekuritas Indonesia, said during a Media Day event titled “The Q2 Blueprint: Turning Volatility into Value” in Jakarta on Wednesday.

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Banks Offer a Rare Bright Spot

Indonesia’s banking giants are still growing earnings despite the broader market selloff.

Bank Mandiri, the country’s largest state-owned bank by assets, posted the strongest profit growth among major lenders, with net income rising 18.8% year-on-year in the first four months of 2026.

Bank Rakyat Indonesia, the state-controlled microfinance powerhouse, recorded 13.7% profit growth. Bank Central Asia, Indonesia’s largest private lender, grew profit by 3.8%, while Bank Negara Indonesia, another major state lender, posted 5.2% growth in the first quarter.

Mirae also highlighted other stocks with solid first-quarter performance, including Indosat (ISAT), the telecom operator; Cimory (CMRY), the dairy and consumer-food company; Japfa (JPFA), the poultry and animal-feed producer; Midi Utama Indonesia (MIDI), the retail chain operator; Erajaya Swasembada (ERAA), the mobile-device retailer; and Surya Citra Media (SCMA), the media group.

Market Rout Hits Prajogo-Linked Stocks

Wednesday’s selloff was broad-based, with nearly all sectors under pressure. Basic materials tumbled 4.67%, transportation fell 4.22%, energy dropped 2.65%, consumer staples lost 2.06%, and technology declined 1.38%.

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The heaviest drag came from large-cap stocks linked to tycoon Prajogo Pangestu. Chandra Asri Pacific (TPIA) hit its lower auto-rejection limit after plunging 14.74%, while Barito Renewables (BREN) fell 7.62%, Barito Pacific (BRPT) dropped 10.18%, Dian Swastatika Sentosa (DSSA) lost 5.33%, Petrindo Jaya Kreasi (CUAN) sank 9.23%, and Amman Mineral Internasional (AMMN) slid 6.31%.

The index moved between 6,215 and 6,459 during the session, with total trading value reaching Rp20.57 trillion ($1.29 billion).

Purbaya Says It May Be Time to Buy

Finance Minister Purbaya Yudhi Sadewa added a bullish counterpoint, arguing that the government’s new export body, PT Danantara Sumberdaya Indonesia, could improve transparency in natural-resources exports and lift profits at listed companies.

The body is designed to tighten oversight of strategic commodity exports, including coal, palm oil, and ferroalloys, after the government found indications of under-invoicing and transfer pricing.

“If I am not mistaken, profitability should multiply. So this is positive news for companies in the stock market,” Purbaya said during a press conference at the Indonesian parliament complex in Jakarta on Wednesday.

He went further, calling the selloff a possible buying opportunity. “If I say it is time to buy, get ready. So if I say it’s time to buy, just be ready to scoop them up,” Purbaya said.

Defensive Strategy Still Rules

Mirae urged investors to stay selective as volatility remains elevated. Martha said investors should diversify portfolios, increase exposure to defensive instruments such as money-market mutual funds, and wait for better entry points in bonds.

“Volatility is not merely a risk, but also an opportunity for disciplined and knowledgeable investors,” Martha said. “We hope investors can better understand the second-quarter risk map and make measured investment decisions.”