Jakarta, CNBC Indonesia \u2014 The Jakarta Composite Index (JCI) recorded\none of the worst declines in the history of Indonesia\u2019s capital\nmarket.<\/p>\n
On Friday, 16 October 2026, the JCI plunged 11.57% to 5,199.96, its\nsteepest daily fall in 28 years, or since the 1998 monetary crisis.<\/p>\n
According to Refinitiv data, the decline was even sharper than during\nthe 2008 global financial crisis, when the index fell 10.38% in a single\nday. The last deeper fall came on 8 January 1998, when the JCI plunged\n11.95% amid the monetary crisis.<\/p>\n
The latest sell-off came amid investor concerns that Morgan Stanley\nCapital International (MSCI) could downgrade Indonesia\u2019s stock market\nfrom Emerging Market to Standalone Market. Fears about the impact on\nforeign capital flows also weighed on domestic share trading.<\/p>\n
Over nearly three decades, the JCI has suffered several daily\ndeclines of more than 10%, during the 1998 monetary crisis, the 2002\nBali bombing and the 2008 global financial crisis.<\/p>\n
The following are the five largest daily falls in the JCI, based on\nRefinitiv data from January 1998 to 16 October 2026.<\/p>\n
8 January 1998: JCI plunges 11.95%<\/p>\n
The largest daily fall in the period occurred on 8 January 1998. The\nindex plunged 11.95% and closed at 347.11 amid the monetary crisis\nengulfing Indonesia.<\/p>\n
The JCI\u2019s collapse coincided with a sharp fall in the rupiah, which\nlost around 26% of its value against the US dollar in a single day.<\/p>\n
Selling pressure was so intense that the index briefly fell by about\n19% during the session, before recovering some of its losses towards the\nclose.<\/p>\n
Investor panic intensified after the government announced its\n1998\/1999 draft state budget, which was considered inadequate to address\nthe economic problems of the time. Concerns about the continuation of\nthe economic rescue programme with the International Monetary Fund (IMF)\nfurther eroded market confidence and triggered heavy share selling.<\/p>\n
16 October 2026: JCI plunges 11.32%<\/p>\n
Nearly 28 years later, the JCI again recorded a double-digit daily\ndecline. On Friday, 16 October 2026, the index fell 11.32% to 5,199.96,\nits steepest drop since January 1998.<\/p>\n
Unlike the 1998 monetary crisis, the latest pressure came amid\nconcerns about Indonesia\u2019s position in global stock indices.<\/p>\n
MSCI has opened a consultation on a proposal to downgrade Indonesia\u2019s\nstock market from Emerging Market to Standalone Market. The move follows\nmarket concerns about insufficient transparency over share ownership,\nalleged co-ordinated trading practices and weak enforcement of\ncapital-market rules.<\/p>\n
If implemented, the plan could result in Indonesian shares being\nremoved from several MSCI global indices, which are used as benchmarks\nby international fund managers.<\/p>\n
8 October 2008: JCI falls 10.38%<\/p>\n
Before the 2026 decline, one of the JCI\u2019s largest falls occurred on 8\nOctober 2008. The index dropped 10.38% to 1,451.67 before the Indonesia\nStock Exchange (IDX) halted trading.<\/p>\n
At the time, the global financial crisis was shaking markets\nworldwide following the bankruptcy of Lehman Brothers in September 2008.\nConcerns about the health of financial institutions and a global\neconomic slowdown prompted sell-offs across stock exchanges, including\nIndonesia\u2019s.<\/p>\n
Trading was halted to calm investor panic and prevent further selling\npressure. The exchange remained closed for several subsequent trading\ndays before reopening on 13 October 2008.<\/p>\n
14 October 2002: JCI falls 10.36%<\/p>\n
Another major decline occurred on 14 October 2002, when the JCI\nplunged 10.36% to close at 337.48.<\/p>\n
The fall came on the first trading day after the Bali bombings on 12\nOctober 2002. The attack, which killed hundreds of people, shook\nIndonesia and raised concerns about security and national economic\nactivity.<\/p>\n
The stock market reacted negatively as trading resumed on Monday, 14\nOctober 2002. Investors feared the attacks would affect tourism,\ninvestment and international confidence in Indonesia.<\/p>\n
The pressure was not limited to the stock market. The rupiah also\nweakened against the US dollar amid heightened uncertainty following the\nattacks.<\/p>\n
6 October 2008: JCI plunges 10.03%<\/p>\n
The 2008 global financial crisis caused the JCI to fall by more than\n10% on more than one occasion.<\/p>\n
Two days before the 8 October plunge, the JCI had already dropped\n10.03% to 1,648.74 on Monday, 6 October 2008.<\/p>\n
The fall came as the Indonesia Stock Exchange (IDX) reopened after\nthe long Eid al-Fitr holiday. While the domestic exchange was closed,\nglobal stock markets continued to come under pressure as the US\nfinancial crisis worsened.<\/p>\n
When trading resumed, concerns about the impact of the global crisis\nimmediately triggered heavy selling in Indonesia\u2019s stock market.\nInvestors grew increasingly worried about the world economy,\nparticularly as the US financial-sector crisis began affecting financial\nmarkets in countries around the world.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/jci-plunges-11-57-its-worst-fall-since-the-1998-crisis-1792151491", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }