IHSG reverses early losses to close 1.12 per cent higher
The Indonesian index finished at 5,387.91 as investors watched Bank Indonesia policy and MSCI’s review of the country’s market classification.
Indonesia’s benchmark IHSG gained 59.54 points, or 1.12 per cent, to finish at 5,387.91 on 22 October, recovering from an opening decline. Advancing stocks numbered 489, compared with 216 decliners and 258 that ended unchanged.
The index opened at 5,247.98 and fell as much as 2 per cent before recovering to reach an intraday peak of 5,422.59. Trading volume totalled 331.29 million lots, with turnover of Rp15,313.18 billion.
Among the domestic developments drawing investor attention were Bank Indonesia’s decision to leave its benchmark interest rate unchanged and new measures aimed at encouraging bank lending. Investors were also watching President Prabowo Subianto’s response to a possible change in Indonesia’s MSCI market classification.
MSCI is considering moving Indonesia from Emerging Market to Standalone Market status. Consultation with market participants is continuing until April 2027, and a final decision is due no later than 30 June 2027.
Speaking at a cabinet meeting on 21 October, Prabowo characterised MSCI’s comments as pressure intended to intimidate Indonesian market participants. Investors are also monitoring capital-market reforms by Indonesian authorities, particularly measures concerning transparency of share ownership and enforcement of trading rules, ahead of MSCI’s decision.
