The Indonesian stock market is starting to bounce back this week after taking a heavy blow earlier. On Wednesday, March 19, 2025, the Jakarta Composite Index (IHSG) ended the day up 1.42%, closing at 6,311.66. This was a welcome recovery after a 7% drop earlier in the week. But even with this rebound, foreign investors are still pulling their money out, particularly from some of the country's largest banks.

Despite the rise in the index, foreign investors were still net sellers, with IDR 910.33 billion pulled from all markets. Most of this came from regular market transactions, which saw IDR 965.10 billion in sales. On the flip side, there was a modest net purchase of IDR 54.78 billion in the negotiation and cash markets.

When you look at where foreign money is leaving, the biggest losses are seen in the banking sector. Foreign investors have been selling off shares in major banks, as shown by Stockbit data:

• Bank Central Asia (BBCA): IDR 540.32 billion
• Bank Negara Indonesia (BBNI): IDR 244.15 billion
• Bank Rakyat Indonesia (BBRI): IDR 173.62 billion
• Bank Syariah Indonesia (BRIS): IDR 41.43 billion
• Alamtri Resources Indonesia (ADRO): IDR 37.02 billion
• Telkom Indonesia (TLKM): IDR 25.56 billion
• Sumber Alfaria Trijaya (AMRT): IDR 24.50 billion
• United Tractors (UNTR): IDR 20.11 billion
• Indosat (ISAT): IDR 17.19 billion
• Barito Pacific (BRPT): IDR 14.77 billion

It's clear that foreign investors are steering clear of Indonesia's big banks like Bank Central Asia, Bank Negara Indonesia, and Bank Rakyat Indonesia. So, what’s going on here?

The reasons behind this trend aren't crystal clear, but there are a few possible factors. It could be worries over market conditions, potential regulatory changes, or just uncertainty about the stability of these banks. Whatever it is, foreign investors seem to be playing it cautious for now.

As the market picks up again, we’ll have to wait and see if this trend shifts. Will foreign investors start returning to these stocks, or is the hesitation going to stick around for a while?

PHOTO: INFOBANKNEWS

This article was created with AI assistance.