Jakarta. The "sell Indonesia" trade gathers pace on Friday as foreign investors dump another Rp 3.7 trillion ($204 million) worth of Indonesian equities, extending a retreat from the country's financial markets that leaves its stocks and currency among Asia's worst performers this year.

The latest selling pushed cumulative net foreign outflows from the Indonesia Stock Exchange (IDX) to Rp 61.3 trillion ($3.36 billion) in 2026, with investors offloading some of the country's biggest blue-chip names including  Chandra Asri Pacific (TPIA) and Bank Central Asia (BBCA).

According to Bloomberg, Indonesia's benchmark stock index has plunged 36% from its record high just five months ago, making it the world's worst-performing major equity gauge this year, while the rupiah has weakened more than 7% against the US dollar.

"The big trade in Asia is 'sell Indonesia'," George Boubouras, head of research at hedge fund K2 Asset Management, told Bloomberg. The veteran investor said he had exited all Indonesian positions in 2024 and currently has "zero exposure" to the market.

Friday's trading data showed TPIA and BBCA each recorded roughly Rp 1.1 trillion in foreign net selling. Other major outflows hit Bank Mandiri (BMRI) at Rp 235.7 billion, Aneka Tambang (ANTM) at Rp 169.8 billion, and Bank Rakyat Indonesia (BBRI) at Rp 110.8 billion.

The only notable foreign buying interest was seen in digital infrastructure firm Solusi Sinergi Digital (WIFI), which attracted a comparatively modest Rp 21.3 billion in net purchases.

The wave of selling dragged Indonesia's benchmark Jakarta Composite Index (JCI) down 4.2%, or 245 points, to 5,594.7, with 656 stocks declining against just 115 gainers. Trading value reached Rp 31.4 trillion.

All sectoral indices ended in negative territory, led by transportation, which fell 5.9%, followed by energy, industrials and infrastructure.

Pilarmas Investindo Sekuritas said the selloff reflects a combination of global and domestic concerns. Externally, investors remain cautious over geopolitical uncertainty and the prospect of further US interest-rate increases after resilient American labor market data strengthened expectations that the Federal Reserve could tighten policy again later this year.

Domestically, investors have grown increasingly uneasy over the rupiah's depreciation and the prospect of continued capital flight. Speculation over a possible review or reclassification of Indonesia's market status by MSCI has also weighed on sentiment.

"Domestic political uncertainty is a typical emerging-market risk that global investors tend to react to by staying on the sidelines until predictability re-emerges," Tang Yuxuan, Asia head of rates and foreign exchange strategy at J.P. Morgan Private Bank in Hong Kong, told Bloomberg. "We still advise caution at this stage."

The rupiah has become the clearest reflection of those concerns. The currency has fallen roughly 14% since President Prabowo Subianto took office and briefly breached the psychologically important Rp 18,000-per-dollar level on Thursday. Options markets now imply a roughly 45% chance that the rupiah weakens to Rp 19,000 by the end of the year, with some traders even pricing in a move toward Rp 20,000 over the next 12 months.

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