The Indonesia Composite Index (IHSG) fell 117.98 points, or 1.94 percent, to 5,975 in the first session of trading on the Indonesia Stock Exchange on Monday. All sectors declined. The intraday low was 5,971, down 2 percent.
Sector losses led by energy
Energy was the weakest sector, falling 3.57 percent. Infrastructure dropped 3.33 percent and basic materials fell 2.77 percent. Industrials slid 2.39 percent, while transportation lost 1.81 percent.
Financials declined 0.96 percent and property fell 0.86 percent. Technology and health each dropped 0.80 percent. Non-primary consumer stocks were the most resilient, shedding 0.49 percent.
MSCI policy in focus
Desy Erawati, an analyst at Phintraco Sekuritas, said market issues remained tied to MSCI. The index provider has frozen increases in foreign inclusion factor and number of shares, along with additions of new shares and status changes in its indices.
That policy is to be evaluated ahead of the November 2026 index review, with the MSCI announcement expected at the end of October. Market watchers have flagged the risk that Indonesia could be reclassified as a frontier market. Prospects for unfreezing these changes are projected for the second half of 2027.
Macro calendar weighs on sentiment
BRI Danareksa Sekuritas said the decline came while markets awaited US and China inflation data. The IMF and World Bank meetings are scheduled for 12 to 18 October 2026. US inflation data, along with China’s inflation and trade figures, are due on Wednesday, 14 October. Federal Reserve officials are scheduled to speak from 14 to 16 October.
BRI Danareksa sees short-term prospects for the IHSG as negative, citing selling pressure and geopolitical uncertainty in the Middle East.
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