Jakarta. Indonesian stocks fell more than 3% on Tuesday as investors adopted a cautious stance ahead of the release of key economic indicators, while concerns over corporate governance and global market uncertainty further weighed on sentiment.

The benchmark Jakarta Composite Index (JCI) dropped 177.6 points, or 3.05%, to close at 5,643.1.

Trading turnover reached Rp 13.02 trillion ($727 million), with declining stocks overwhelmingly outnumbering gainers. A total of 599 stocks fell, compared with 141 gainers, while 219 issues ended unchanged. Trading volume reached 19.5 billion shares across 1.59 million transactions.

All major sectors finished lower, led by basic materials, which plunged 5.54%.

Energy stocks fell 3.51%, followed by consumer staples (2.79%), property (2.68%), and infrastructure (2.22%). Financials lost 1.89%, healthcare declined 1.79%, industrials slipped 1.71%, transportation fell 0.85%, technology retreated 0.60%, and consumer discretionary stocks edged down 0.14%.

Analysts at Pilarmas Investindo Sekuritas said the selloff was driven mainly by domestic factors as investors awaited the government's upcoming releases of inflation and trade data, both closely watched indicators of the economy's health.

Market participants were also monitoring the outcome of MSCI's market review, which could influence foreign investment flows into Indonesian equities.

Investor sentiment was further dampened by a newly issued regulation providing broad legal protection for purchasers of bonds issued by Danantara, Indonesia's sovereign investment agency.

According to Pilarmas, the regulation raised questions over corporate governance and transparency, prompting greater caution among foreign investors.

Global uncertainty also encouraged many investors to remain on the sidelines while awaiting fresh economic and market catalysts.

Despite the broad market decline, several stocks posted sharp gains. Panca Global Kapital surged 34.3%, followed by Agro Yasa Lestari, Formosa Ingredient Factory, Esta Multi Usaha, and Pelayaran Nasional Ekalya Purnamasari, which all rose between 15% and 28%.

Among the day's biggest losers were Sarana Meditama Metropolitan, Multi Medika Internasional, Megalestari Epack Sentosaraya, Panin Sekuritas, and Tunas Alfin, each falling by nearly 15%.