Key Metrics
10.14
Heat Index-
Impact LevelMedium
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Scope LevelNational
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Last Update2026-01-29
Key Impacts
Positive Impacts (1)
Negative Impacts (9)
Event Overview
The suspension of key index adjustments by MSCI for the Indonesian stock market, coupled with a warning of a potential downgrade, has led to significant market volatility. This decision highlights the influence of global indices on emerging markets and the potential economic repercussions of such actions.
Collect Records
MSCI Decision to Freeze Index Adjustments Causes Indonesian Stock Market Plunge
MSCI decided to temporarily freeze the adjustment of key indices for the Indonesian stock market and warned of a potential downgrade to frontier market status. As a result, the Jakarta Composite Index fell sharply in early trading on Thursday, dropping by up to 8%, which triggered a trading halt. After the resumption of trading, the decline further increased to 10%, reaching the lowest level since early August 2025. The index had already closed down 7.4% on Wednesday, marking the largest single-day drop since April 8, 2025. Mandiri Sekuritas attributed the sharp decline to MSCI's temporary measures and advised investors to wait for signs of market stabilization or reduced selling pressure, while also monitoring subsequent actions from regulatory authorities.