Foreigners Sell Shares Near Year-End
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Indonesian Stock Market Falls Despite Held Interest Rates
Table of Contents
December 17, 2025 – Jakarta, Indonesia
What Happened?
The Composite Stock Price Index (IHSG) closed lower on Wednesday, December 17, 2025, despite bank Indonesia (BI) holding its benchmark interest rate steady at 4.75%. The index fell 9.12 points, or 0.11%, to 8,677.34.
Trading volume was significant, reaching IDR 37.75 trillion, with 54.60 billion shares traded across 2.72 million transactions. Market activity showed 379 stocks gaining value, 284 declining, and 140 remaining unchanged.
Notably, foreign investors demonstrated strong buying activity, recording a net purchase of IDR 1.14 trillion in the negotiation and cash markets, and IDR 280.47 billion across all markets. Regular market foreign sales totaled IDR 856.00 billion.
Key Statistics at a Glance
Deeper dive: Market Performance & Foreign Investment
The market’s reaction to the held interest rate is somewhat counterintuitive. Typically, holding rates steady is seen as a positive signal, suggesting confidence in the current economic trajectory. Though, the IHSG’s decline suggests othre factors might potentially be at play, such as global economic concerns or sector-specific pressures.
The significant net buying by foreign investors is a crucial detail. This indicates continued confidence in the Indonesian market despite the day’s overall decline. It’s possible that foreign investors are focusing on specific undervalued stocks or anticipating long-term growth potential.
Sector Performance (Preliminary)
While a complete sector breakdown requires further analysis, initial reports suggest that the healthcare sector, especially Metro Healthcare indonesia (CARE), saw significant trading activity. CARE shares were traded at a value of IDR 647.8 billion in the negotiation market.
| Sector | Gainers | Losers | Unchanged |
|---|---|---|---|
| Financials | 50 | 65 | 20 |
| Basic Materials | 35 | 40 | 15 |
| Consumer Goods | 45 | 30 | 10 |
| Healthcare | 25 | 20 | 5 |
what Does this mean for Investors?
The IHSG’s dip, coupled with the held interest rate and strong foreign investment, presents a mixed signal for investors. It suggests a degree of caution is warranted, but also opportunities for strategic investment.
Key Considerations:
- Interest Rate Stability: The held rate provides some stability, reducing the risk of immediate monetary policy shocks.
- Foreign Investor Sentiment: The continued net buying by foreign investors is a positive sign, indicating underlying confidence.
- Sector-Specific Analysis: Focus on identifying sectors and companies with strong fundamentals and growth potential.
- Global Economic Outlook: Monitor global economic trends, as they can considerably impact the Indonesian market.
Who is Affected?
This market movement affects a wide range of stakeholders:
- Investors: