Indonesian stocks fall 5.17% as regulators prepare further MSCI talks

Indonesia's benchmark stock index dropped 5.17% on 19 October 2026 amid pressure linked to sentiment surrounding MSCI. The Financial Services Authority (OJK) said it had taken steps with other market regulators to address the situation, with further discussions with MSCI planned for the same day.

At 10.29 WIB, the Jakarta Composite Index (IHSG) stood at 4,916.81, down 268.30 points. It had touched an intraday low of 4,907.37. Trading volume reached 141.26 million lots, worth about Rp8.22 trillion.

OJK chair Friderica Widyasari Dewi said in Jakarta that various efforts had been made and expressed hope that market conditions would improve. OJK, the Indonesia Stock Exchange and the Indonesian Central Securities Depository met market participants and financial influencers on 18 October.

At a 16 October press conference, Friderica outlined reforms including a reduction in the shareholding disclosure threshold from 5% to 1%. Investor classifications were expanded from 9 categories to 39, while free-float requirements were being increased gradually.

According to OJK, MSCI has formally communicated that its review will take place in November. The authority said it respected that timetable and the independence of global index providers.

OJK official Hasan Fawzi said MSCI's feedback aligned with Indonesia's capital-market integrity reform action plan, particularly on consistent and sustained enforcement. OJK and self-regulatory organisations plan to continue discussions with index providers and global institutional investors to share reform updates and gather policy feedback.