Indonesia’s IHSG closes 5.65 per cent higher at session peak

Indonesia’s IHSG share index finished trading on 20 October at 5,278.89, gaining 282.28 points, or 5.65 per cent, as buying strengthened during the afternoon session. The closing level was its highest of the day.

The index opened at 4,980.16, below its previous close, before rebounding sharply. It fluctuated between 5,100 and 5,200 during the first session, then advanced beyond 5,200 in the second. Trading volume reached 546.64 million lots, with turnover of about Rp25.1 trillion.

The gains came after the Indonesia Stock Exchange (BEI) announced two measures on 19 October in response to MSCI’s warning that Indonesia could be reclassified from Emerging Market to Standalone Market status. Disclosures of holdings above 1% will include information on shareholders’ affiliations with companies. Stocks on the High Shareholding Concentration (HSC) list will also be excluded from the IHSG calculation, with the effective date to be announced.

BEI president director Jeffrey Hendrik said HSC stocks currently account for 18% of the index’s weighting. They will remain listed and tradable, and can re-enter the index calculation once removed from the HSC list. The exchange said inclusion on that list would not bring additional sanctions.

MSCI continues to raise concerns about ownership transparency and suspected co-ordinated trading, and is seeking evidence of consistent enforcement. Its reclassification consultation runs until April 2027, with a final decision due by 30 June 2027. The IHSG had fallen 11.57% on 16 October and another 3.64% on 19 October, closing at 4,996.61.

Separately, Dony Oskaria, head of BP BUMN and chief operating officer of Danantara, said Danantara was ready to increase its holdings in state-owned companies with strong fundamentals. Speaking after being summoned to the presidential palace, he described the index’s decline as normal market dynamics.