Foreign Funds Exit Indonesian Stock Exchange as Analysts Recommend Buying Large-Cap Stocks

Foreign investors continued to aggressively sell large-capitalisation shares on the Indonesian Stock Exchange (BEI) throughout March 2026. Despite facing selling pressure, several analysts believe the prospects for large-cap stocks remain attractive for investment.

On Friday trading (6 March 2026), foreign investors recorded net selling of 263 billion rupiah, equivalent to approximately 15.54 million US dollars.

Accumulated since the beginning of 2026, the value of net foreign selling reached 7.28 trillion rupiah at the close of Friday’s trading session, equivalent to approximately 430.62 million US dollars.

This selling pressure caused Bank Central Asia (BBCA) shares to decline 12.77 per cent throughout 2025. Other shares that were heavily sold off by foreign investors included PT Bumi Resources Tbk (BUMI), with net selling valued at 7.7 trillion rupiah. The coal mining company from the Bakrie Group saw its share price fall 45.24 per cent year to date.

Meanwhile, PT Bank Mandiri Tbk (BMRI) and PT Bank Negara Indonesia Tbk (BBNI) shares each recorded net selling of approximately 1.9 trillion rupiah. In terms of price movement, BMRI shares fell 1.87 per cent year to date, whilst BBNI shares still recorded a marginal gain of 0.23 per cent.

Capital market observer and Co-Founder of Pasar Dana Hans Kwee assessed that foreign investor selling activity remained related to heightened geopolitical tensions in the Middle East. According to him, this situation prompted global investors to seek assets considered safer.

“As long as tensions between the United States and Israel with Iran remain high, safe-haven assets will continue to be pursued by investors, including the US dollar,” Hans told Kontan on Sunday (8 March 2026).

“If the proposals by the Financial Services Authority and the Indonesian Stock Exchange are accepted by MSCI, then foreign investors will return to the stock market after the conflict,” he explained.