Indonesia stocks reverse early losses to rise 1.00 per cent
The IHSG recovered after falling as much as 2% at the opening, with trading value reaching Rp4,467.35 billion by 09:56 WIB.
Indonesia’s benchmark IHSG stood at 5,381.43 at 09:56 WIB on 22 October, gaining 53.07 points, or 1.00 per cent, after reversing a sharp decline at the start of trading.
The index opened at 5,247.98 and fell as much as 2% in early trading before recovering. It reached an intraday high of 5,382.36 ahead of 10:00 WIB. By 09:56 WIB, 100.26 million lots had changed hands, with transactions worth Rp4,467.35 billion.
Domestic developments drawing market attention included Bank Indonesia’s decision to leave its benchmark interest rate unchanged, alongside new measures intended to encourage 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 due to continue until April 2027, with a final decision scheduled for announcement no later than 30 June 2027.
Speaking at a plenary cabinet meeting on 21 October, Prabowo characterised MSCI’s statement as pressure intended to intimidate Indonesian market participants. He said Indonesia would not be deterred by such challenges. Investors are also monitoring capital-market reforms, particularly share-ownership transparency and enforcement of trading rules, ahead of MSCI’s decision.
