Indonesia's IHSG pares losses but ends down 3.64%
MSCI is considering standalone status for Indonesia, while Goldman Sachs estimates potential passive fund outflows of US$5.6 billion if it leaves the indices.
Indonesia's IHSG ended trading on 19 October 2026 at 4,996.61, a loss of 188.49 points or 3.64 per cent. The benchmark recovered part of a decline that had reached 5.36 per cent during the session.
CNBC Indonesia linked the market's fall to MSCI's announcement that it was considering shifting Indonesia out of its emerging-market category and into standalone status. MSCI said inadequate progress on ownership transparency and trading behaviour meant that even a downgrade to frontier status would no longer reflect the severity of the problems.
MSCI had raised the possibility of a frontier-market downgrade in January. Goldman Sachs estimates that Indonesia's removal from MSCI indices could lead to US$5.6 billion in passive fund withdrawals. Active funds using those indices as benchmarks hold assets exceeding US$8 billion, but any sales by those funds would be discretionary.
During trading, the IHSG's low was 4,907.37. A second-session recovery briefly took it past 5,000, with its high for the day recorded at 5,012.87. Turnover reached Rp25.13 trillion on volume of 34.07 billion shares, above the preceding session's activity.
Refinitiv data showed losses across all sectors. Basic materials, consumer non-primary, technology and financials suffered the largest declines. Stocks dragging on the index included Bank Central Asia, Bank Rakyat Indonesia, Bayan Resources, Telkom Indonesia and Amman Mineral Internasional.
Foreign investors have sold a net US$4.88 billion of Indonesian shares in 2026. CNBC Indonesia reported that the outflow could become the largest annual figure in at least 16 years.
