Indonesia’s benchmark stock index closed down 3.64 percent at 4,996.61 points on Monday, shedding 188.49 points in the second session. The index had touched an intraday low of 4,907.37, a fall of 5.36 percent, before recovering part of the loss.
The sell-off followed an announcement by MSCI that it is considering reclassifying Indonesia from emerging market to standalone status. Earlier in January, the index provider had threatened a downgrade to frontier market status over concerns about shareholding transparency and trading behaviour.
Broad-based losses across sectors
Every sector declined. The steepest falls came in basic materials, non-cyclical consumer goods, technology and financials. Heavyweight drags included Bank Central Asia, Bank Rakyat Indonesia, Bayan Resources, Telkom Indonesia and Amman Mineral.
Total trading volume reached 34.07 billion shares, worth 25.13 trillion rupiah.
Passive fund exposure at stake
Goldman Sachs estimates that passive funds could pull out up to $5.6 billion if Indonesia were removed from the MSCI index. More than $8 billion in active fund assets is benchmarked to the same index.
Foreign investors have already sold a net $4.88 billion of Indonesian shares so far in 2026. Foreign net selling this year could be the largest annual outflow in at least 16 years.
Related: Jakarta stocks slump as MSCI weighs Indonesia market downgrade · OJK pledges reforms as MSCI review weighs on Jakarta stocks
Source: MSCI
