Two Trades Likely Drove Biggest Indonesia Outflow in 21 Years

Indonesian stocks recorded their biggest foreign outflow in more than two decades, likely driven by block trades in palm oil maker PT FAP Agri, amid heightened scrutiny on ownership in the wake of MSCI Inc.’s investability concerns.

Global funds sold a net $1.2 billion of the nation’s equities on Thursday, the most since 2005, according to data compiled by Bloomberg. Meanwhile, about $1.1 billion of shares in the Fangiono family-backed FAP Agri were traded in two blocks on the same day, data show.