Indonesia’s IHSG falls 16.70% in October, its worst month of 2026

Indonesia’s benchmark IHSG share index dropped 16.70% in October 2026 from the previous month, marking its steepest monthly decline of the year, according to Stockbit data cited by CNBC Indonesia on 2 November.

The fall followed a 6.96% loss in September, reversing gains of 10.51% in July and 4.64% in August. October’s performance was also the weakest for that month in the past decade. In comparison, October 2020 produced a 5.30% rise, the strongest October gain over that period.

On 16 October 2026, MSCI opened a public consultation on a proposal to reclassify Indonesia as a standalone market rather than an emerging market. The proposal remains under consultation, with a final decision to be announced no later than 30 June 2027. MSCI said it might provide interim updates on market participants’ responses.

MSCI cited investor concerns about the investability of Indonesian shares, including ownership transparency and suspected coordinated trading. Standalone classification would place Indonesia outside MSCI’s developed, emerging and frontier market groupings, with its shares excluded from the main global indices.

In response, the Indonesia Stock Exchange (BEI), the Financial Services Authority (OJK) and self-regulatory organisations have been strengthening market transparency and data quality. Measures include publishing shareholdings above 1%, providing more detailed ownership information and reinforcing trading surveillance.

BEI is also gradually raising the minimum free float for listed companies to 15%. As of 30 September 2026, the average was 22.99%, while 560 of 918 companies, or 61%, met the requirement.

Separately, OJK announced fines totalling Rp2.1 trillion: Rp1.5 trillion for market manipulation involving one listed company and Rp600 billion for initial public offering process violations involving two listed companies.