Jakarta. Indonesian stocks suffered a broad-based sell-off on Tuesday, with 624 stocks declining as the Jakarta Composite Index (JCI) tumbled 3.78% to 4,904.

Jakarta Composite Index (JCI) moved between 4,895 and 5,143 during the session. Trading volume reached 27.15 billion shares, with a total transaction value of Rp 11.72 trillion ($645.23 million) and more than 1.38 million transactions. Only 57 stocks advanced, compared with 624 decliners, while 37 remained unchanged.

Foreign investors' sustained selling pressure added to the market's losses. BRI Danareksa Sekuritas reported that foreign investors recorded net sales of Rp 831.5 billion during the first trading session, comprising Rp 1.6 trillion in purchases against more than Rp 2.4 trillion in sales.

According to the brokerage, investors were positioning themselves ahead of the MSCI Index Review scheduled for Nov. 11–12, 2026. The review has drawn market attention because it could trigger changes to the index's constituent stocks and their respective weightings.

Investors are also awaiting Tuesday's meeting of the Financial System Stability Committee (KSSK), which is expected to address volatility in the capital market, the rupiah's depreciation and broader financial system stability.

Domestically, Pilarmas Investindo Sekuritas pointed to rising food inflation as another source of pressure on the JCI. Food inflation accelerated to 5.81% in October 2026, up from 5.03% in September, indicating that food supply disruptions caused by El Niño-related climate anomalies have yet to fully subside.

Meanwhile, core inflation eased to 2.56% year-on-year (yoy) in October, compared with 2.84% in the previous month.

Pilarmas Investindo Sekuritas said the lower core inflation rate was not necessarily positive for the market, as it could signal weakening real household demand, particularly among lower- and middle-income groups.

"Consumers tend to cut spending on non-essential goods and services because more of their income is being absorbed by basic necessities," the brokerage added.

JCI's decline also mirrored weakness across several Asian markets following a sell-off in technology and artificial intelligence (AI) stocks on Wall Street.

Pilarmas Investindo Sekuritas said technology stocks remained under selling pressure amid concerns over the scale of corporate spending on AI development, while the potential returns on those investments remained uncertain.

Investors were also cautious ahead of the United States' midterm elections on Tuesday. The vote could reshape President Donald Trump's final two years in office, with Republicans and Democrats competing for control of Congress and key gubernatorial positions amid widespread public dissatisfaction over high living costs.

"The Trump administration and the Republican Party are facing political pressure over high energy costs, which could fuel inflation and influence the central bank's interest rate policy," Pilarmas wrote in its research note.

In commodity markets, West Texas Intermediate (WTI) and Brent crude were trading at around $96 and $104 per barrel, respectively, on Tuesday. Both benchmarks had fallen approximately 7% in the previous session following signs of diplomatic progress between the United States and Iran.

Iranian President Masoud Pezeshkian said his government had received greater authority from the country's supreme leader to pursue peace negotiations. The prospect of continued talks between the two countries eased concerns over potential disruptions to oil supplies.

"However, the decline in oil prices has not been enough to improve overall market sentiment," Pilarmas added.

Global markets remained volatile, with oil prices subsequently climbing after the United States conducted defensive strikes against Iranian targets near the Strait of Hormuz, renewing concerns over supply disruptions.

Across Asia, South Korea's benchmark Kospi fell 4%, while Japan's markets were closed for a holiday. Hong Kong's Hang Seng Index gained 0.6%, whereas the Shanghai Composite Index declined 0.8%.

On Wall Street, the S&P 500 dropped 0.5% on Monday, erasing an earlier gain of 1.1%. The Dow Jones Industrial Average rose 0.4%, while the Nasdaq Composite lost 1.1%.

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