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View all search resultsIDX trails Asian markets amid MSCI concerns, global risks
The index has fallen 18.21 percent from its position at the start of the year, when the market closed on Tuesday, marking the steepest decline among Asian bourses.
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A woman takes a photo of an electronic display showing negative movements across the Indonesia Stock Exchange (IDX) Composite index on Feb. 2, 2026, at the bourse’s South Jakarta headquarters. (Antara/Sulthony Hasanuddin)
T
he Indonesia Stock Exchange (IDX) Composite index continues its downward trend and has become the worst performer in the Asian market amid mounting global and domestic pressures.
The index has fallen 18.21 percent from its position at the start of the year, when the market closed on Tuesday, marking the steepest decline among Asian bourses. Over the same period, India’s S&P BSE Sensex and the Philippines’ PSEi slipped by just 9.78 percent and 3.08 percent, respectively, while several other major exchanges in the region posted gains.
There was a glimpse of optimism earlier this month, when the index outperformed its Southeast Asian peers, climbing 6.14 percent to 7,488.01 between April 6 and April 10. However, the momentum has since faded, weighed down by MSCI’s delayed decision over the IDX’s transparency concern.
Stock market analyst Reidy Octa told The Jakarta Post on Tuesday that the shift in sentiment was triggered by a combination of global risk-off factors and domestic pressures. On the external front, a stronger United States dollar and uncertainty over interest rates had fueled larger capital outflows.
“Meanwhile, on the domestic side, the free float [increase], HSC [High Shareholder Concentration] and index rebalancing have pressured some stocks, making the IDX Composite lose its momentum,” he said.
The IDX, Financial Services Authority (OJK) and Indonesia Central Securities Depository (KSEI) have finalized their proposals to increase free float and introduce HSC as part of their broader market transparency reforms, aimed at addressing transparency concerns raised by global index provider MSCI in January.
MSCI has since frozen several Indonesian stock indices, triggering one of the country’s major stock market routs followed by high-profile resignations at the OJK and IDX. The new leadership at both institutions subsequently introduced a series of measures to address the concerns before the May deadline.
