Senior Officials Descend on IDX

JAKARTA — Several senior state officials visited the Indonesia Stock Exchange (IDX) building in Jakarta on Friday (16/10/2026) afternoon, amid a plunge in the Indonesia Composite Index (JCI) that forced a temporary trading halt. The delegation arrived at around 1:00 p.m. local time.

Deputy Speaker Sufmi Dasco Ahmad was joined by Investment Minister and Danantara Indonesia CEO Rosan Perkasa Roeslani, Financial Services Authority (OJK) Chair Friderica Widyasari Dewi, and National Police Chief Gen. Suyudi Ario Seto, as reported by MetroTV and KompasTV.

The officials' visit took place as the domestic stock market faced massive selling pressure following Morgan Stanley Capital International's (MSCI) announcement opening a consultation on changing Indonesia's capital-market classification.

JCI Plunges Over 10%, Trading Halt Imposed

At Friday morning's opening, the JCI immediately sank 8.01%, or 469.86 points, to 5,393.92. The sharp drop prompted the IDX to impose a 30-minute trading halt from 8:58 to 9:28 a.m. local time, under Regulation No. II-A on equity trading.

After trading resumed, selling pressure only broadened. Mirae Asset Sekuritas research in its Lunch Break report noted the JCI ended the first session down 10.76% at 5,233. Portal viv.co.id reported the index even touched 5,199.13, or down 11.2% — its lowest position since 2020 — with 675 stocks declining and only 18 advancing.

Large-cap stocks were the main drag: PT Dian Swastatika Sentosa Tbk (DSSA) plunged 14.9%, PT Amman Mineral Internasional Tbk (AMMN) fell 14.8%, PT Bank Central Asia Tbk (BBCA) weakened 14.0%, PT Bank Rakyat Indonesia (Persero) Tbk (BBRI) corrected 12.3%, and PT Bank Mandiri (Persero) Tbk (BMRI) dropped 8.5%.

Trigger: MSCI Reclassification Threat

Negative sentiment was triggered by MSCI's announcement opening a consultation with market participants to review Indonesia's index classification from Emerging Market to Standalone Market. MSCI will accept feedback until April 30, 2027, and announce its decision before June 30, 2027.

In its statement quoted by Reuters, MSCI flagged concerns over market functioning, transparency of share-ownership structures, suspected coordinated trading, and the effectiveness of rule enforcement. The institution judged Indonesia's classification as an emerging market no longer appropriate unless clear evidence of material improvement in market governance is found.

Foreign investors' anxiety was reflected in capital outflows: foreigners recorded net selling of US$212.5 million in October, and US$4.87 billion cumulatively since early 2026. Pressure also spread to the rupiah, trading at Rp18,063 per US dollar in the morning after briefly touching above Rp18,100.

Dasco Demands IDX Reforms; OJK Says Reform Underway

After the visit, Dasco stressed his presence was part of parliament's oversight function over the capital market. He asked the IDX to keep improving while accommodating input from international institutions, including MSCI.

“We are monitoring events that have occurred at the exchange and the incidents we have been watching,” Dasco said, as reported by KompasTV. He judged MSCI's announcement came earlier than the index review process previously expected in November 2026.

Meanwhile, OJK Chair Friderica Widyasari said her institution is carrying out capital-market reform in Indonesia. Mirae Asset noted the pressure on the domestic exchange was specific: most Asian stock markets actually moved higher at midday, following Wall Street's positive trend the night before.