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View all search resultsIDX down more than 10% after MSCI stock market warning
The Indonesia Stock Exchange (IDX) halted trading on Friday as its benchmark index plunged 8 percent at the open following MSCI’s consideration to downgrade Indonesia’s status from emerging market currently to “standalone market”.The benchmark plunged further after trading resumed and was down more than 10 percent by 9:45 a.m.
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A woman takes a photo of an electronic display at the Indonesia Stock Exchange (IDX) in South Jakarta on Feb. 2, 2026, showing negative movements across the IDX Composite index. (Antara/Sulthony Hasanuddin)
T
he Indonesia Stock Exchange (IDX) halted trading on Friday as its benchmark index plunged 8 percent at the open following MSCI’s consideration to downgrade Indonesia’s status from emerging market currently to “standalone market”.
The benchmark plunged further after trading resumed and was down more than 10 percent by 9:45 a.m.
The New York-headquartered global index provider announced the consideration on Thursday, saying a decision would be made by the end of June 2027.
The downgrade consideration a follows MSCI’s June 2026 review, which reported that market participants had raised significant concerns about the “investability” of the Indonesian equity market, including persistent opacity in shareholding structures and suspicion of coordinated trading behavior.
While Indonesia’s finance authorities introduced capital market reforms to address the concerns, MSCI said market participants had indicated that “sufficient progress has not been observed consistently across the Indonesian equity market” to date.
Thursday’s reclassification warning is a fresh blow for the IDX, which has observed its benchmark index moving downward since MSCI first issued its transparency concerns in January.
Editor's note: This story has been updated to reflect changes in the IDX Composite index amid volatile trading.
