Foreign Funds Flee Rp 1.1 Trillion After MSCI Announcement

Foreign investors continued their net selling activity in the Indonesian stock market during the morning session on Wednesday (13/5/2026). Recorded foreign purchases amounted to Rp 2.5 trillion, while sales reached Rp 3.6 trillion, resulting in a net sell of Rp 1.1 trillion across all markets. The Composite Stock Price Index (IHSG) dropped more than 1% on Wednesday (13/5/2026), as the market reacted negatively to the Morgan Stanley Capital International (MSCI) index review, which removed several major Indonesian stocks from its global indices. Based on Indonesia Stock Exchange (BEI) data, at the close of the first session, the IHSG fell 124.36 points or -1.81% to 6,734.54. Amid the heavy selling pressure, several stocks attracted foreign investors. Shares of PT Abadi Nusantara Hijau Investama Tbk (PACK) saw the highest foreign buying value in the first session, estimated at Rp 31.9 billion from a transaction volume of around 102.2 million shares. This was followed by PT Timah Tbk (TINS), which recorded foreign purchases of Rp 19.7 billion with a volume of 5.5 million shares. Meanwhile, shares of PT Telkom Indonesia (Persero) Tbk (TLKM) also made the list of sought-after stocks, with a value of Rp 14.8 billion from transactions of about 5 million shares. Foreign investors were also active in accumulating shares of PT Rukun Raharja Tbk (RAJA) worth Rp 11 billion with a volume of 2.5 million shares, in line with plans for a stock split. Additionally, shares of PT Buana Lintas Lautan Tbk (BULL) were sought by foreigners with purchases of Rp 10 billion from a transaction volume of 21.2 million shares. Next, shares of PT Charoen Pokphand Indonesia Tbk (CPIN) recorded foreign purchases of Rp 7.9 billion. Then, shares of PT Merdeka Gold Resources Tbk (EMAS) booked estimated foreign buys of Rp 6.7 billion. Shares of PT Gudang Garam Tbk (GGRM) also entered the list of stocks bought by foreigners with a purchase value of around Rp 3.6 billion. There followed PT Bank Danamon Indonesia Tbk (BDMN) with accumulated purchases of Rp 3.5 billion and PT Asia Pramulia Tbk worth Rp 3.3 billion. Meanwhile, stocks sold by foreigners included jumbo-cap banking stocks, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), with an estimated sale value of Rp 196.7 billion from a transaction volume of around 62.8 million shares. Foreign selling pressure also hit shares of PT Amman Mineral Internasional Tbk (AMMN) with an estimated value of Rp 89.7 billion. This was followed by shares of PT Bank Mandiri (Persero) Tbk (BMRI) sold by foreigners for Rp 63.5 billion. Additionally, conglomerate stocks like PT Petrindo Jaya Kreasi Tbk (CUAN) experienced foreign selling worth Rp 53.2 billion. And shares of PT Barito Pacific Tbk (BRPT) worth Rp 52.1 billion. Giant private banks also remained targets for foreign selling, such as PT Bank Central Asia Tbk (BBCA) worth Rp 52 billion. Furthermore, foreign investors were recorded selling shares of PT Aneka Tambang Tbk (ANTM) for Rp 43.8 billion and PT Bakrie & Brothers Tbk (BNBR) worth Rp 37.5 billion. Then, shares of PT Dian Swastatika Sentosa Tbk (DSSA) experienced foreign sales of Rp 30.8 billion, while shares of PT Mitra Adiperkasa Tbk (MAPI) recorded foreign selling actions worth Rp 28.6 billion. As information, in the morning session trading today, 398 stocks weakened, 262 strengthened, and 150 other stocks were stagnant. Transaction value reached Rp 10.28 trillion with a trading volume of 26.13 billion shares in 1.47 million transactions. The majority of trading sectors weakened, with the deepest corrections recorded in the infrastructure, basic materials, technology, and energy sectors. Only the industrials sector strengthened today. The greatest pressure on the IHSG came from stocks removed from the MSCI Global Standard Index and MSCI Global Small Cap Index. CGS International Sekuritas Indonesia previously estimated that this MSCI rebalancing could trigger passive outflows of up to US$1.8 billion or around Rp 31.49 trillion. All these changes will take effect at the close of trading on 29 May 2026. The good news is that MSCI retained Indonesia in the emerging markets group. As is known, MSCI had previously opened the possibility of reclassifying Indonesia’s status from emerging markets to frontier markets. In the announcement on Tuesday (12/5/2026) US time, Indonesia remained categorised in the emerging markets list alongside other countries such as China, India, Korea, Malaysia, Philippines, Taiwan, and Thailand.