Indonesia’s IHSG falls 1.94% as all share sectors decline
Energy stocks led the losses, while analysts pointed to uncertainty over MSCI policy and upcoming US and Chinese economic data.
Indonesia’s benchmark IHSG ended the first trading session on 12 October 2026 at 5,975, losing 117.98 points, or 1.94%. The index had reached an intraday low of 5,971, a decline of 2%.
Every equity sector on the Indonesia Stock Exchange fell. Energy recorded the largest loss at 3.57%, followed by infrastructure at 3.33% and basic materials at 2.77%. Industrials declined 2.39%, while transport lost 1.81%.
Phintraco Sekuritas analyst Desy Erawati said MSCI-related uncertainty remained a key concern for investors. She cited the risk of Indonesia being reclassified as a frontier market and the prospect of lifting a freeze on certain index changes, projected for the second half of 2027.
MSCI previously froze increases in foreign inclusion factor (FIF) and number of shares (NOS), alongside new stock additions and stock status upgrades. The measures are due for evaluation ahead of the November 2026 index review, with an announcement expected in late October.
BRI Danareksa Sekuritas linked the early trading weakness to investors awaiting US and Chinese inflation figures. Those releases, together with China’s trade balance, are scheduled for 14 October 2026. The brokerage also highlighted escalating Middle East tensions and the IMF and World Bank meetings on 12–18 October 2026.
Investors will also watch Federal Reserve officials’ speeches on 14–16 October 2026 for monetary policy signals. BRI Danareksa Sekuritas assessed the IHSG’s near-term outlook as tending towards negative amid selling pressure and geopolitical uncertainty.
