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Indonesian stocks fall more than 11% after MSCI reclassification proposal
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Closing result confirms largest daily decline since January 1998
Indonesia’s Jakarta Composite Index closed October 16 down 11.57%, its largest daily decline since January 1998, Reuters reported. Katadata reported a closing level of 5,185.11. Regulator OJK also announced fines totalling 2.1 trillion rupiah concerning transactions in DSSA, BREN and CUAN shares, according to ANTARA. OJK clarified that those sanctioned were market participants, including traders, underwriters and ultimate beneficial owners; the company names identify the shares involved. The completed trading session and imposed penalties are distinct from MSCI’s proposed reclassification of Indonesia to standalone status, which remains under consultation.
Reuters: Indonesia stocks post biggest single-day drop in nearly 3 decades · Katadata: All IDX Stock Sectors in the Red, Basic Materials Plunge 13% · ANTARA: Jadi perhatian MSCI, OJK jatuhkan denda ke DSSA, BREN dan CUAN
Trading resumes after a halt; reclassification remains under consultation
Indonesia’s Jakarta Composite Index fell more than 11% during October 16 morning trading after MSCI proposed moving Indonesia from emerging-market to standalone status, Reuters reported. An 8% opening decline triggered a 30-minute trading halt. The proposal remains under consultation, with a final decision due by the end of June 2027, ANTARA reported. MSCI’s framework places standalone indexes outside its emerging- and frontier-market indexes. If adopted, the change could require funds tracking affected benchmarks to sell Indonesian shares; the consultation itself does not implement that change. Indonesia’s regulator said it was continuing market reforms.
MSCI: Market Classification · ANTARA: OJK hormati pandangan MSCI dan tindak lanjuti masukan atas bursa RI · Jakarta stocks plunge 11% as MSCI set to drop Indonesia from indexes