Jakarta Composite Index Slides to 8,880 as Gold Rallies and Foreign Outflows Hit Banks

JAKARTA, Investortrust.id — The Jakarta Composite Index or IHSG plunged sharply on Friday, Jan 23, 2026 in Jakarta, sliding to around 8,880 within minutes of the opening as domestic and global pressures triggered heavy selling that erased early gains and dragged the market lower. The sudden drop of more than 120 points in just 15 minutes reversed an opening rally to 9,031 and weakened investor confidence despite broadly positive Asian markets.

According to Danareksa Sekuritas, the sell off reflected a rapid shift in risk appetite as uncertainty intensified across asset classes. "In the middle of IHSG weakness, gold sector stocks recorded gains, reflecting a reallocation of investor capital into defensive stocks amid rising market uncertainty," Danareksa said.

The pressure was amplified by large scale foreign outflows concentrated in heavyweight banking and conglomerate stocks. Danareksa noted that "foreign investors recorded significant net selling throughout the week, especially in major banking stocks and conglomeration groups, with estimated net sell reaching around Rp 3 trillion," a move that tightened liquidity and deepened risk aversion toward Indonesian assets.

Currency stress added to the negative sentiment as the rupiah weakened sharply against the US dollar. "The rupiah weakened again toward Rp 16,980 to Rp 17,000 per US dollar, approaching its weakest level on record, driven by geopolitical, fiscal, and capital outflow concerns," Danareksa said, adding that the currency slide weighed on equity valuations.

Market participants also moved to lock in gains after a strong rally in recent weeks. "After an aggressive rally that lifted IHSG to around 9,100, many investors engaged in profit taking as valuations appeared stretched and triggered capital rotation," Danareksa said.

The early collapse was led by broad based sectoral declines, with consumer, financial, infrastructure, and energy stocks falling simultaneously. Heavy selling in shares linked to Prajogo Pangestu, including PTRO, BRPT, BREN, CUAN, and CDIA, as well as stocks affiliated with Happy Hapsoro and coal names such as BUMI and DEWA, exerted the largest drag on the index.

Over the past five trading days, the sell off in Prajogo related stocks intensified, with PTRO down more than 28 percent and briefly hitting auto reject lower, while CUAN, BRPT, CDIA, and BREN also posted double digit losses. The slump wiped out more than $2.7 billion from Prajogo Pangestu’s net worth in a single morning, according to Forbes real time data.