Indonesia’s IHSG falls 11.12% in morning trading
The benchmark reached 5,211.84 as MSCI consulted investors on potentially moving Indonesia from Emerging Market to Standalone Market status.
Indonesia’s benchmark IHSG share index lost 651.94 points, or 11.12 per cent, to reach 5,211.84 at 09:34 WIB on 16 October 2026. The decline deepened after the index opened 8.01 per cent lower at 5,393.92 at 09:00 WIB.
During morning trading, the index ranged between 5,193.22 and 5,404.51. Trading volume stood at 85.6 million lots by 09:34 WIB, with transactions valued at Rp3,152.63 billion.
MSCI has begun a consultation on whether to reclassify Indonesia’s stock market from Emerging Market to Standalone Market. It aims to announce a final decision no later than 30 June 2027, with feedback accepted until 30 April 2027.
The index provider cited investor concerns over shareholding transparency, suspected coordinated trading and the effectiveness of enforcement. MSCI said reforms announced by regulators had not yet delivered sufficient, consistent progress.
MSCI is also keeping restrictions on changes involving Indonesian shares. These include no increases to the Foreign Inclusion Factor or Number of Shares, no additions to the MSCI Indonesia Investable Market Index, and no moves into larger-capitalisation index segments.
MSCI said it could reconsider the proposed reclassification if the consultation produces evidence of material improvements in governance and the functioning of Indonesia’s stock market.
