Halt triggered twice
The index had already dropped 8.01 percent to 5,393 before a morning trading halt was triggered. Indonesia Stock Exchange (Bursa Efek Indonesia) rules call a halt once the IHSG falls 8 percent within 30 minutes, with a further 30-minute halt possible if the decline reaches 15 percent.
At 09:00 WIB, transaction value stood at 922.33 million rupiah on volume of 5.36 million, with frequency at 105.72 thousand. Market capitalisation was 9,538 trillion rupiah, down from 10,298 trillion rupiah in the prior session on Thursday (15/10), a decline of 760 trillion rupiah.
MSCI consultation, not a verdict
MSCI’s announcement, dated 15 October 2026, opens a consultation rather than confirming a reclassification. The review cites concerns over share ownership transparency, suspected coordinated trading, and the effectiveness of rule enforcement. Market feedback is due by 30 April 2027, with MSCI targeting a final decision by 30 June 2027. Should the downgrade proceed, Indonesian shares could be removed from MSCI’s global index, potentially triggering outflows of foreign funds.
Jeffrey Hendrik, Direktur Utama BEI, said the exchange respects MSCI’s independence in assessing and classifying markets under its own methodology, but that given the progress and reform steps already taken, BEI will request further clarification from MSCI on the basis for the announcement. The Indonesia Stock Exchange and the Financial Services Authority (Otoritas Jasa Keuangan) have taken steps aimed at improving transparency and integrity in the capital market.
US data add pressure
BRI Danareksa Sekuritas pointed to the US producer price index, which rose 1.3 percent month-on-month in September against a consensus forecast of 0.5 percent, as an additional source of pressure on sentiment. The brokerage said volatility is expected to remain high, and that market participants should monitor the IHSG’s response after the halt, potential foreign fund outflows, rupiah movements, and progress on capital market reform, while avoiding reactive decisions and prioritising risk management.
Related: Jakarta stocks slump as MSCI weighs Indonesia market downgrade · Indonesia asks MSCI to clarify proposed market downgrade
Source: MSCI
