Fadli Zon calls for stock exchange reform after Indonesian shares plunge
The IHSG fell 11.57 per cent on 16 October after MSCI opened a consultation on potentially changing Indonesia’s market classification.
Indonesia’s Culture Minister Fadli Zon has called for stock exchange reform, arguing that the recent slide in Indonesian shares reflected problems within the capital market rather than weakness in the economy. Fadli, who is also a deputy chairman of Gerindra, made the remarks at a media briefing in Jakarta on 22 October 2026.
On 16 October, the Jakarta Composite Index, or IHSG, lost 678.67 points, equivalent to 11.57 per cent, ending at 5,185.11 against the previous session’s 5,863.78. The fall followed MSCI’s opening of a consultation over a possible reclassification of Indonesia from Emerging Market to Standalone Market.
Fadli maintained that Indonesia’s economic fundamentals remained strong, pointing to economic growth and what he described as controlled inflation.
He also said the government under President Prabowo faced challenges in bringing the economy into line with Article 33 of the 1945 Constitution, which provides for state control of key production sectors and natural resources for public prosperity. In his assessment, Indonesia’s economy remained too liberal and capitalistic, with the benefits of natural-resource wealth distributed unevenly.
