Indonesia’s IHSG down 31.14% in 2026 amid MSCI concerns
Market capitalisation has fallen by Rp5,548 trillion from its December 2025 peak, while MSCI is due to reassess restrictions ahead of its November review.
Indonesia’s composite stock index, the IHSG, opened higher on 14 October 2026 but remained down 31.14% since the start of the year. Market capitalisation stood at Rp10,452 trillion, with uncertainty over MSCI’s assessment accompanying the market’s decline.
The index began trading at 5,940.68, gaining 14.70 points, or about 0.25%. Early trading saw it reach a high of 5,946.28 and a low of 5,938.30.
On 8 December 2025, the IHSG reached its highest level of that year at 8,710.70, while market capitalisation peaked at Rp16,000 trillion. Capitalisation has since declined by Rp5,548 trillion, or 34.68%.
MSCI has frozen increases in the foreign inclusion factor (FIF) and number of shares (NOS), along with new stock additions and stock status upgrades within its indices. Those restrictions are due for reassessment ahead of the November 2026 index review, with an MSCI announcement expected in late October.
In its 23 June 2026 assessment, MSCI said it would consider options if progress remained insufficient before the November review, including a consultation on reclassifying Indonesia as a Frontier Market. Its concerns include ownership transparency and the possibility of coordinated trading disrupting price formation.
MSCI has acknowledged reforms including disclosure of holdings above 1%, more detailed investor classifications, the HSC framework and a roadmap for a minimum 15% free float. Consistent implementation and effectiveness remain part of its assessment. A possible consultation does not establish a November downgrade: consultation, a reclassification decision and implementation are separate stages.
