Undervalued Stocks Emerge After Sharp IHSG Sell-off

Jakarta, CNBC Indonesia — Several blue-chip shares are now undervalued, or relatively cheap, after Indonesia’s stock market was hit during trading on Friday (16 October 2026).

On Friday, the IHSG plunged 11.57% to 5,199.96, its steepest daily fall in 28 years, or since the 1998 monetary crisis.

The latest pressure came amid investor concerns that Morgan Stanley Capital International (MSCI) could downgrade Indonesia’s stock market from Emerging Market to Standalone Market status. Worries about the impact on foreign fund flows also weighed on domestic share trading.

A number of blue-chip stocks also plunged. Shares in PT Bank Central Asia Tbk (BBCA) fell 14.81% to Rp5,175 each. PT Bank Rakyat Indonesia Tbk (BBRI) dropped 14.84% to Rp2,640, while PT Astra International Tbk (ASII) slumped 12.34% to Rp4,190.

The steep price falls have made the valuations of these three shares relatively cheap.

Using price-to-book-value (PBV) bands and estimated price-to-earnings (PE) bands, CNBC Indonesia assessed the valuations by comparing book values and earnings with historical averages and valuation standard deviations.

PT Bank Central Asia Tbk — BBCA

BBCA had a PBV valuation of 2.4 times as at 16 October 2026. The share is trading at a discount based on the PBV-band approach: its PBV is below its historical average and also below the minus-two standard-deviation level of 2.9 times.

PT Bank Rakyat Indonesia Tbk — BBRI

BBRI had a PBV valuation of 1.2 times as at 16 October 2026. It is also trading at a discount under the PBV-band approach, with its PBV below the historical average and even below the minus-two standard-deviation level of 1.3 times.

PT Astra International Tbk — ASII

ASII had an estimated PE valuation of 5.8 times as at 16 October 2026. Under the PE-band approach, it is trading at a discount: its PE is below its historical average and has moved towards the minus-one standard-deviation level of 5.9 times.