Local vs Foreign Investors: Who Really Controls the Indonesian Stock Exchange?

Jakarta - The 81st anniversary of the Republic of Indonesia serves as a moment to assess the extent to which the Indonesia Stock Exchange (IDX) has achieved ‘independence’ from dependence on foreign capital.

From 1 January to 14 August 2026, foreign investors recorded a net sell of Rp72.873 trillion. The figure is sizeable, but it has not stripped the Indonesian stock market of all its strength.

Local investors are increasingly dominant. They control the majority of share value, contribute nearly two-thirds of transactions, and account for more than 99% of share investor accounts.

Local investors win in three arenas. Based on data from the Indonesian Central Securities Depository (KSEI), the value of shares recorded in the KSEI depository system reached approximately Rp6,961.42 trillion on 31 July 2026.

Domestic investors held Rp4,156.43 trillion, or 59.71%. Meanwhile, foreign investors controlled around Rp2,805 trillion, or 40.29%.

Local dominance is also evident in trading. Throughout January-July 2026, domestic investors contributed around 64.05% of share transaction value, while the foreign contribution reached 35.95%.

The largest difference is seen in the number of accounts. KSEI statistics for June show that around 99.61% of share investors are domestic investors. The proportion of foreign investors is only 0.39%.

The number of investors also continues to grow. As of 7 August 2026, capital market investors had reached 30,274,265 Single Investor Identifications (SIDs), an increase of nearly 9.93 million investors since the start of the year.

For share investors specifically, the number reached 10,052,059 SIDs, up 16.83% compared with the end of 2025. This growth gives the market an increasingly broad domestic cushion.

Foreign investors sold Rp72.87 trillion. At the close of 31 July, the IDX recorded a year-to-date foreign net sell of Rp72.987 trillion. Entering August, the direction of foreign capital briefly reversed.

During 3-7 August, foreign investors booked a net buy of around Rp1.697 trillion. The year-to-date net sell position consequently shrank to Rp71.29 trillion.

That flow did not last long. In the period 10-14 August, foreign investors again recorded a net sell of around Rp1.583 trillion. On Friday, 14 August alone, foreign net selling reached Rp1.034 trillion.

After all movements were taken into account, foreign investors recorded a slim net buy of Rp114 billion during the first 10 trading days of August. However, cumulatively since 1 January, foreign investors still posted a net sell of Rp72.873 trillion.

The data illustrates the fast-changing character of foreign funds. Foreign money entered quite aggressively in the first week of August, then almost entirely exited again ahead of 17 August.

Despite the large foreign net sell since the start of the year, the market has not lost all its strength. In the first 10 trading days of August, the Jakarta Composite Index (JCI) rose from 6,236.126 to 6,401.888, or strengthened by 2.66%.

Market capitalisation increased from Rp10,923 trillion to Rp11,243 trillion. This means the value of the Indonesian stock market grew by around Rp320 trillion in just two weeks.

Trading activity also remained busy. Average daily transaction volume and frequency in the week of 10-14 August were still higher than in the last week of July.

In the week of 3-7 August, the JCI surged 2.78% when foreign investors made net purchases. However, when foreign investors sold again Rp1.583 trillion the following week, the JCI only corrected slightly by 0.12%.

This condition shows that foreign investors can still accelerate gains, but domestic liquidity is increasingly able to absorb pressure when global capital exits.

The largest owners are actually local corporations. Domestic dominance does not only come from millions of retail investors. The largest group of shareholders is actually local corporations with ownership of around Rp2,525.80 trillion, or 36.28%.

Local individual investors are in second place with Rp1,112.77 trillion, or 15.98%. Meanwhile, foreign strength is spread across corporations, financial institutions, mutual funds, and other investor groups.

The data shows that domestic strength is a combination of corporations, institutions, pension funds, insurance companies, the government, mutual funds, and individual investors. KSEI statistics for June show institutional investors control 82.02% of share value, while individuals hold 17.98%.

So, who controls the Indonesian stock exchange? Local investors are the structural rulers of the Indonesian bourse. Local investors lead in ownership value, transaction activity, and number of accounts.

However, foreign investors remain the controllers of momentum. Their ownership reaches 40.29% and is heavily concentrated in large-cap banking, telecommunications, consumer, energy, and commodity stocks.

In conclusion, local investors already hold the throne, but foreign investors still have the button to accelerate or slow the market. The Indonesian stock exchange is increasingly self-reliant, although not yet fully free from the influence of global capital.