At the start of trading today, Tuesday (20 October 2026), market\nparticipants will continue to monitor developments surrounding MSCI and\nthe authorities\u2019 efforts to maintain financial-market stability. The\nChinese central bank\u2019s interest-rate decision and the start of Bank\nIndonesia\u2019s (BI) Board of Governors Meeting will also be in focus.<\/p>\n
The Jakarta Composite Index (JCI) closed lower again on Monday (19\nOctober 2026), although it managed to recoup most of its losses towards\nthe end of the second session.<\/p>\n
According to Indonesia Stock Exchange (IDX) data, the JCI fell 188.49\npoints, or 3.64%, to 4,996.61.<\/p>\n
The index was volatile throughout the session. It plunged as much as\n5.36% to 4,907.37 before gradually paring its losses.<\/p>\n
During the second session, the JCI briefly climbed back above the\npsychological 5,000 mark, reaching an intraday high of 5,012.87.<\/p>\n
The recovery was not enough to take the index out of negative\nterritory, however, and it ultimately closed below 5,000.<\/p>\n
Trading remained active despite the market pressure. Total volume\nreached 34.07 billion shares, with a transaction value of Rp25.13\ntrillion.<\/p>\n
A total of 100 shares rose, 656 fell and 43 were unchanged.<\/p>\n
Foreign investors continued to sell, recording net outflows of Rp1.72\ntrillion across the market.<\/p>\n
Several large-cap stocks also weighed on the JCI, including PT Bank\nCentral Asia Tbk (BBCA), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI),\nPT Bayan Resources Tbk (BYAN), PT Telkom Indonesia (Persero) Tbk (TLKM)\nand PT Amman Mineral Internasional Tbk (AMMN).<\/p>\n
Ongoing selling pressure was linked to investor concerns about MSCI\u2019s\nannouncement that it may downgrade Indonesia\u2019s stock-market\nclassification from Emerging Market to Standalone Market.<\/p>\n
The proposal remains under consultation and is not yet a final\ndecision. But concerns about potential foreign-fund outflows have kept\ninvestors cautious.<\/p>\n
In the foreign-exchange market, the rupiah also failed to recover\nagainst the US dollar on Monday.<\/p>\n
Refinitiv data showed that the rupiah closed 0.17% weaker at Rp18,030\nper US dollar, compared with Rp18,000 on Friday (16 October 2026).<\/p>\n
The decline left the Indonesian currency above the psychological\nthreshold of Rp18,000 per US dollar.<\/p>\n
A stronger US dollar added to the pressure on the rupiah, as domestic\nfinancial markets remained unsettled by concerns over the MSCI\nannouncement.<\/p>\n
BI said it would remain active in the market to maintain rupiah\nstability in line with fundamentals.<\/p>\n
Erwin Gunawan Hutapea, head of BI\u2019s Monetary Management and\nSecurities Department, said interventions were continuing to stabilise\nthe rupiah amid financial-market pressure.<\/p>\n
\u201c[We are] ensuring that market mechanisms function properly.\nInterventions are being carried out consistently through Non-Deliverable\nForward (NDF) transactions in offshore markets, spot and Domestic\nNon-Deliverable Forward (DNDF) transactions in the domestic market, as\nwell as purchases of government bonds (SBN) in the secondary market,\u201d\nErwin said, as quoted by CNBC Indonesia on Monday (19 October 2026).<\/p>\n
Meanwhile, the yield on 10-year government bonds was again broadly\nunchanged on Monday.<\/p>\n
In the bond market, yields move in the opposite direction to prices:\nwhen yields rise, bond prices generally fall, and when yields decline,\nprices tend to rise.<\/p>\n
In the US, Wall Street closed mixed on Monday (19 October 2026), or\nearly Tuesday Indonesian time.<\/p>\n
Wall Street gained as investors returned to technology stocks after\nthe sector was hit by heavy selling last week amid concerns about\nartificial intelligence (AI).<\/p>\n
The technology-heavy Nasdaq Composite rose 1.11% to 26,430.89. The\nS&P 500 gained 0.41% to close at 7,690.73. The Dow Jones Industrial\nAverage, by contrast, fell 36.38 points, or 0.07%, to 51,966.03.<\/p>\n
Intel shares rose 2% after JPMorgan analysts upgraded the chipmaker.\nAdvanced Micro Devices (AMD) gained 1.8%, while Micron Technology jumped\nabout 3%.<\/p>\n
CoreWeave, one of the leading companies in the neocloud industry,\nreversed earlier gains to close 0.4% lower, despite Goldman Sachs\nupgrading its rating on the company\u2019s shares.<\/p>\n
CoreWeave shares plunged more than 25% last week, their steepest\nweekly decline since November 2025, amid investor concerns about the\ncompany\u2019s debt burden.<\/p>\n
Technology shares under pressure as investors grow wary of\nAI<\/strong><\/p>\n Last week was a difficult period for US equity markets. The S&P\n500 fell nearly 2%, its biggest weekly decline since late June.<\/p>\n The Nasdaq slumped 4.5%, ending a four-week run of gains.<\/p>\n The information-technology sector also dropped more than 6%, its\nworst weekly performance since April 2025.<\/p>\n Goldman Sachs data showed that technology was the global sector with\nthe largest net selling last week. Hedge funds also sold technology\nshares at the highest proportion on record in the dataset.<\/p>\n Concerns about the sustainability of AI investment gained traction\nafter CNBC reported that Anthropic\u2019s revenue reached US$16.8 billion in\nthe third quarter of 2026, up from US$11.6 billion in the previous\nquarter.<\/p>\n Despite the increase, the figures prompted investors to question the\npace of AI-business growth against the scale of investment being poured\ninto technology infrastructure.<\/p>\n Pressure also spread to corporate-bond markets.<\/p>\n Investors began avoiding CoreWeave debt, while the company\u2019s credit\ndefault swap (CDS) contracts reached levels signalling serious credit\nstress.<\/p>\n LNW chief investment officer Ron Albahary said movements in\nCoreWeave\u2019s bond spreads reflected a shift in investors\u2019 view of the\nassumption that AI investment was relatively insulated from rising\ninterest rates.<\/p>\n He said that if profit growth began to slow, markets could become\nincreasingly vulnerable.<\/p>\n \u201cInvestors will be far more selective in assessing whether these\ncompanies can generate returns on capital sufficient to justify the debt\nthey have taken on,\u201d he said.<\/p>\n Before the latest sell-off, Albahary added, investors tended to\nassume that all AI investment would pay off. The reality, however, was\nnot so straightforward.<\/p>\n Oil prices volatile as energy conflicts draw\nattention<\/strong><\/p>\n Outside technology, market participants were also watching oil\nmarkets amid increased attacks on ships in the Persian Gulf and Russian\nand Ukrainian strikes against energy infrastructure.<\/p>\n On Sunday (18 October 2026), Ukraine attacked an oil terminal in St\nPetersburg, Russia. Damage to energy infrastructure raised concerns that\nsupply pressures could persist into 2027.<\/p>\n Long-dated oil futures began to rise as concerns mounted over the\npossibility of prolonged supply disruptions.<\/p>\n On Monday, nearby West Texas Intermediate (WTI) crude futures closed\n2.22% higher at US$103.66 a barrel. Brent crude, by contrast, fell 0.28%\nto US$109.55 a barrel.<\/p>\n Big technology companies\u2019 results to set the\ntone<\/strong><\/p>\n Investors will focus this week on earnings releases from several\nmajor companies, including Meta Platforms and Tesla.<\/p>\n Their results are expected to offer fresh indications of the\ntechnology sector\u2019s outlook and help stabilise share-price movements\nafter last week\u2019s turbulence.<\/p>\n For investors, the key question is no longer simply how much\npotential AI has, but whether technology companies\u2019 revenue and profit\ngrowth can keep pace with their substantial investments and the\nassociated debt risks.<\/p>\n As the second trading day of the week begins, market participants are\nexpected to monitor the IDX, the government and Danantara\u2019s response to\nMSCI\u2019s announcement, share buybacks by several conglomerate-owned\ncompanies, and President Prabowo Subianto\u2019s direction to strengthen\nenforcement of capital-market rules.<\/p>\n Indonesia\u2019s investment realisation for the first nine months of 2026\nwill also be watched.<\/p>\n Overseas, markets will monitor signs of an improving Chinese economy\nand the country\u2019s central bank interest-rate decision today.<\/p>\n 1. MSCI response: IDX to exclude HSC shares from\nJCI<\/strong><\/p>\n The Indonesia Stock Exchange is taking further steps to improve the\ndomestic capital market following MSCI\u2019s announcement last week that it\nwas considering downgrading Indonesia\u2019s stock-market status from\nEmerging Market to Standalone Market.<\/p>\n On Monday (19 October 2026), the IDX announced two new initiatives to\nimprove transparency and the calculation of stock indices.<\/p>\n One of its most significant measures is to exclude all shares on the\nHigh Shareholding Concentration (HSC) list from the calculation of the\nJakarta Composite Index.<\/p>\n HSC refers to a situation in which ownership of a stock is\nconcentrated among a small group of shareholders. This can limit the\nnumber of shares actually available for trading.<\/p>\n IDX president director Jeffrey Hendrik said the exchange had held an\nonline meeting with MSCI after last week\u2019s announcement, but the outcome\nof the discussion could not yet be disclosed publicly.<\/p>\n Jeffrey said the IDX had already introduced several reforms,\nincluding publishing the names of shareholders with stakes above 1%,\nproviding more detailed investor data, raising free-float requirements\nand announcing which shares were classified as HSC.<\/p>\n \u201cWe are committed to continuing capital-market reform after\ncompleting four initiatives: disclosing the names of shareholders with\nstakes above 1%, providing granular investor data, increasing free-float\nrequirements and announcing HSC shares. We have also removed the minimum\nprice of Rp50,\u201d Jeffrey said at the IDX in Jakarta on Monday (19 October\n2026).<\/p>\n The IDX will now introduce two further policies.<\/p>\n First, it will add information about shareholders\u2019 relationships with\ncompanies to its disclosures of ownership stakes above 1%.<\/p>\n This will allow investors to see not only who owns shares in a\ncompany, but also whether those shareholders are affiliated with other\nparties.<\/p>\n Second, the IDX will exclude all shares on the HSC list from the JCI\ncalculation.<\/p>\n The move is intended to make the index more representative of actual\nmarket conditions and less affected by stocks with concentrated\nownership.<\/p>\n \u201cThese two initiatives are expected to improve transparency and\nintegrity. We will announce their effective dates shortly,\u201d Jeffrey\nsaid.<\/p>\n The IDX disclosed that HSC shares currently account for 18% of the\nJCI\u2019s weighting.<\/p>\n \u201cThe aim is to provide a more reasonable picture of the index\u2019s\nmovements, as we know there are potential risks in HSC shares. HSC\nshares account for 18% of the JCI,\u201d Jeffrey explained.<\/p>\n Jeffrey stressed that the measure did not mean HSC shares would be\nremoved from the Indonesia Stock Exchange or delisted.<\/p>\n They will remain tradable on the exchange, but will no longer be\nincluded in the JCI calculation while they remain on the HSC list.<\/p>\n HSC shares are already ineligible for inclusion in several major IDX\nindices, including the IDX30, LQ45 and IDX80.<\/p>\n If a stock is removed from the HSC list, it may be reinstated in the\nJCI calculation.<\/p>\n The IDX also confirmed that issuers would face no additional\npenalties simply because their shares were on the HSC list.<\/p>\n The latest IDX measures follow MSCI\u2019s statement that opaque share\nownership and suspected coordinated trading remain concerns for global\ninvestors.<\/p>\n MSCI also said the improvements made by Indonesian authorities would\nneed to be followed by consistent implementation and clear evidence of\nenforcement.<\/p>\n Meanwhile, MSCI continues to freeze certain changes to Indonesian\nstocks in its indices until further notice.<\/p>\n Consultation on the proposed reclassification of Indonesia\u2019s stock\nmarket will continue until April 2027, with a final decision to be\nannounced no later than 30 June 2027.<\/p>\n Concerns over the announcement sent the JCI tumbling 11.57% on Friday\n(16 October 2026), followed by a further 3.64% fall on Monday (19\nOctober 2026), when it closed at 4,996.61.<\/p>\n Market participants will now watch for the effective date of the\nIDX\u2019s new policies and MSCI\u2019s response to the reforms.<\/p>\n 2. Danantara ready to buy more state-owned\nshares<\/strong><\/p>\n Dony Oskaria, head of the State-Owned Enterprises Supervisory Agency\n(BP BUMN) and chief operating officer of Danantara, said the fund was\nready to increase its holdings in state-owned companies with strong\nfundamentals, as the market faced pressure over MSCI\u2019s plan to downgrade\nIndonesia from Emerging Market to Standalone Market.<\/p>\n \u201cWe will assess good stocks with strong fundamentals,\u201d Dony said at\nthe State Palace on Monday (19 October 2026).<\/p>\n Dony said he did not know whether his meeting with President Prabowo\nSubianto had also covered the stock-market turmoil. However, he\ndescribed plans to demutualise the Indonesia Stock Exchange as part of\nthe capital market\u2019s transformation.<\/p>\n He said the JCI\u2019s weakness was a normal feature of financial-market\ndynamics. Danantara, he added, still planned to increase its holdings in\nlisted companies, particularly state-owned firms, that it considered to\nhave strong fundamentals.<\/p>\n 3. Conglomerate-owned issuers announce share\nbuybacks<\/strong><\/p>\n Several Indonesian conglomerate-owned companies have announced share\nbuyback plans amid the heavy pressure on the domestic stock market\nfollowing MSCI\u2019s announcement.<\/p>\n On Monday (19 October 2026), the JCI fell again, touching an intraday\nlow of 4,907.37 before closing down 3.64% at 4,996.61.<\/p>\n Against this backdrop, at least five companies owned by conglomerates\nPrajogo Pangestu and Franky Oesman Widjaja have set aside a combined\nRp4.5 trillion for buybacks.<\/p>\n Four of them are affiliated with Prajogo Pangestu.<\/p>\n PT Barito Pacific Tbk (BRPT) has allocated Rp1 trillion to buy back\nits shares. The programme is scheduled to run until 31 December 2026\nthrough PT Sucor Sekuritas, using the company\u2019s internal cash.<\/p>\n PT Chandra Asri Pacific Tbk (TPIA) has also budgeted up to Rp1\ntrillion to repurchase as many as 800 million shares, or around 0.92% of\nits issued shares.<\/p>\n The company has set a purchase-price range of Rp1,250 to Rp3,000 per\nshare. The buyback will run from 20 October 2026 to 19 January 2027\nthrough PT Henan Putihrai Sekuritas.<\/p>\n Two other companies linked to Prajogo have taken similar steps. PT\nBarito Renewables Energy Tbk (BREN) has set aside Rp1 trillion, while PT\nPetrindo Jaya Kreasi Tbk (CUAN) has allocated Rp500 billion.<\/p>\n Meanwhile, PT Dian Swastatika Sentosa Tbk (DSSA), owned by Franky\nOesman Widjaja\u2019s Sinar Mas Group, has also announced a buyback worth up\nto Rp1 trillion.<\/p>\n DSSA has scheduled the share repurchase for 19 October 2026 to 18\nJanuary 2027.<\/p>\n The company said the move was intended to increase shareholder value\nand maintain investor confidence, as well as<\/p>",
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