Indonesia's IHSG drops 2.09% at opening
Basic materials led sector declines as investors watched Bank Indonesia policy and MSCI's review of Indonesia's market classification.
Indonesia's benchmark IHSG opened at 5,217.14 on 22 October 2026, losing 111.22 points, or 2.09%, amid selling pressure. Trading volume reached 8.75 million lots, with transactions worth Rp408.56 billion.
Refinitiv data showed basic materials falling 1.5%, technology declining 1.1% and financials slipping 0.8%. Bank Central Asia, Sinar Mas Multiartha, Mora Telematika Indonesia, Bank Rakyat Indonesia and Astra International were among the stocks weighing on the benchmark.
Stocks providing support included Metro Healthcare Indonesia, Sumber Alfaria Trijaya, Aneka Tambang, Barito Renewables Energy and Golden Flower.
Investors were also watching Bank Indonesia's decision to leave its benchmark interest rate unchanged, alongside new measures intended to encourage bank lending. Other developments drawing attention included rising British inflation and a jump in French government bond yields.
MSCI is considering whether to move Indonesia from Emerging Market to Standalone Market classification. Consultations with market participants are continuing until April 2027, with a final decision scheduled no later than 30 June 2027.
President Prabowo Subianto characterised MSCI's remarks as pressure intended to intimidate Indonesian market participants, according to comments reported by CNBC Indonesia on 21 October. Investors were also monitoring capital-market reforms by Indonesian authorities, particularly share-ownership transparency and enforcement of trading rules, ahead of MSCI's decision.
