Indonesia Stocks Sink Nearly 5% as Broad Selloff Hits All Sectors, Foreign Funds Pick Selective Bets

JAKARTA, Investortrust.id — Indonesia’s benchmark Jakarta Composite Index slid sharply on Monday, Feb. 2, 2026, closing down 4.88% at 7,922 as heavy selling swept across every sector, even as foreign investors selectively accumulated blue-chip and commodity stocks, signaling tentative confidence amid heightened volatility.

The selloff erased 406.88 points and came with trading value of Rp 27 trillion, equal to about $1.7 billion, as the index moved within a wide intraday range of 7,820 to 8,341, according to data from the Indonesia Stock Exchange.

Market pressure mirrored declines across Asian equities and intensified after investors dumped cyclical and conglomerate-linked shares, sending the basic materials sector down 10.74%, energy lower by 7.66%, consumer staples off 7.67%, infrastructure down 6.06%, and property stocks sliding 6.27%.

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Shares tied to Indonesia’s major business groups were among the hardest hit, including companies linked to Sinarmas, Prajogo Pangestu, Aguan Group, Happy Hapsoro, and coal tycoon Haji Isam, reinforcing concerns over liquidity, free-float exposure, and regulatory scrutiny.

Despite the market rout, several stocks posted notable gains, highlighting sharp stock-picking behavior. Bank Central Asia rose 2.70% to Rp 7,600, while dairy producer Cimory advanced 5.39%, Indofood gained 3.31%, and coal miner Adaro Andalan Indonesia climbed 6.25%. Pharmaceutical firm Soho Global Health surged 24.79%, hitting its upper trading limit.

Foreign investors, who had been heavy sellers in recent sessions, turned net buyers on Monday, recording net inflows of Rp 654.93 billion across the market. The largest net purchases were seen in Bank Central Asia at Rp 427.48 billion, followed by XL Axiata, gold producer EMAS, Dian Swastatika Sentosa, and Adaro Minerals Indonesia.

At the same time, foreign funds cut exposure to major state-owned banks and telecom stocks, with net sales recorded in Bank Mandiri, Bank Rakyat Indonesia, Telkom Indonesia, Perusahaan Gas Negara, and copper-gold miner Amman Mineral.

The sharp decline followed a turbulent previous week in which the index lost 6.94%, its steepest weekly drop in years, wiping Rp 1,197 trillion from market capitalization and triggering two consecutive trading halts amid panic selling linked to MSCI-related concerns.

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Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto said the return of foreign inflows marked an early sign of stabilizing confidence, even as volatility remained elevated.

“For the first time, we are seeing net foreign inflows again,” Airlangga said on Monday in Bogor. “Net foreign inflows mean there is confidence among foreign investors that improvements are taking place.”

He attributed part of the recent selloff to fear-driven behavior among retail investors, particularly those holding stocks vulnerable to tighter free-float requirements.

“This fear of missing out happened among investors who believed the stocks they owned were processed stocks, which could be affected by regulations requiring the free float to be increased to 15%,” he said.

Airlangga also confirmed ongoing communication between Morgan Stanley Capital International and the Indonesia Stock Exchange, though he declined to disclose details of the discussions.

“The meeting between MSCI and the exchange was conducted via Zoom,” he said. “With foreign inflows returning, they believe in the reform efforts underway.”

Separately, State Secretary Prasetyo Hadi struck an optimistic tone, describing the market turmoil as a catalyst for structural reform rather than a systemic threat.

“We must remain optimistic and confident. This is in everyone’s interest,” Prasetyo said, adding that the government viewed the correction as momentum to accelerate market governance reforms.

“We are taking decisions to reform and improve ourselves so the stock market becomes more open, more transparent, and more credible, with the goal of reaching the same class as other global exchanges,” he said.

While Monday’s losses underscored lingering fragility in Indonesia’s equity market, the return of selective foreign buying suggested investors were beginning to differentiate between systemic risk and individual stock value as regulators push ahead with reforms.