Foreign funds pulled nearly Rp 4 trillion from the Indonesian stock exchange in a week.

Donald Trump's election as the 45th President of the United States triggered turmoil in global financial markets. Concerns over his potentially protectionist policies at the helm of the world's largest economy prompted fund managers to withdraw from emerging markets. Stock prices plummeted on global exchanges, including the Jakarta Stock Exchange.

The Jakarta Composite Index (JCI) on the Indonesian Stock Exchange closed down significantly on Friday, November 11, 2016, falling 218.335 points (4 percent) to 5,231.971 from the previous day's close. Compared to the previous week, the Jakarta index only corrected by 2.44 percent. On November 11, 2016, foreign investors recorded net sales of Rp 2.46 trillion, the highest this year. This resulted in a cumulative outflow of Rp 3.73 trillion from the Jakarta Stock Exchange over the week.

In terms of valuation, stock prices on the Jakarta Stock Exchange were already very expensive compared to other Asian exchanges. This is evident in the Jakarta Stock Exchange's price-to-earnings ratio (P/E), which stood at 24.1 times according to Bloomberg data on November 11, 2016. This figure is higher than the P/E ratios of the Malaysian (17.31 times), Thai (16.23 times), Singaporean (11.98 times), and Hong Kong (12.79 times) exchanges.