Breaking: Jakarta Composite Index Opens Up More Than 2% at 5,129

The Jakarta Composite Index (JCI) opened lower again on Monday (19 October 2026), falling 0.33% to 4,980.16, down 16.45 points from the previous close.

However, ten minutes after the market opened, the index reversed direction and surged by more than 2%, returning to the 5,100 level and reaching an early-session high of 5,129.

The rise came after a number of listed companies announced share buy-backs, while self-regulatory organisations, regulators and the government jointly signalled their intention to address problems in the capital market.

The JCI had previously fallen sharply following news from MSCI. Over the past three trading days, the index had plunged 946 points, or 15.93%.

Trading volume totalled 2.20 billion shares, with transactions worth Rp1.04 trillion changing hands in 40,383 trades. A total of 336 shares fell, 205 were unchanged and only 130 rose.

Market participants are expected to continue monitoring the responses of the Indonesia Stock Exchange (IDX), the government and Danantara to MSCI’s announcement, as well as share buy-backs by several conglomerate-owned companies and President Prabowo Subianto’s call to strengthen enforcement of capital-market rules.

In response to MSCI’s announcement last week, which raised the possibility that Indonesia’s equity market could be downgraded from Emerging Market to Standalone Market status, the IDX announced two new initiatives on Monday (19 October 2026). First, disclosures of shareholdings above 1% will include information on shareholders’ affiliations with the company. Second, all shares on the High Shareholding Concentration (HSC) list will be excluded from the JCI calculation, with the effective date to be announced shortly.

IDX President Director Jeffrey Hendrik said HSC shares currently account for 18% of the JCI. These shares will not be delisted and can still be traded; they may also be included in the index calculation again if they are removed from the HSC list. The IDX stressed that companies on the list would face no additional sanctions. The measures build on earlier reforms, including disclosure of shareholders with stakes above 1%, more detailed investor data, higher free-float requirements and the removal of the Rp50 minimum share price.

MSCI has continued to raise concerns about share-ownership transparency and alleged coordinated trading, and has called for evidence of consistent enforcement. Consultation on the potential reclassification will run until April 2027, with a final decision due no later than 30 June 2027. The concerns contributed to an 11.57% drop in the JCI on Friday (16 October 2026), followed by a further 3.64% fall to 4,996.61 on Monday.

Separately, Dony Oskaria, head of the State-Owned Enterprises Agency and Danantara’s chief operating officer, said Danantara was ready to increase its holdings in state-owned companies with strong fundamentals. After being summoned to the Palace, Dony described the JCI’s weakness as normal market dynamics and said the planned demutualisation of the IDX was part of the capital market’s transformation.

Several conglomerate-owned companies also announced share buy-backs. At least five companies owned by Prajogo Pangestu and Franky Oesman Widjaja have set aside a combined total of around Rp4.5 trillion. From Prajogo’s group, BRPT, TPIA and BREN each plan to allocate up to Rp1 trillion, while CUAN has earmarked Rp500 billion.

TPIA is targeting purchases of up to 800 million shares, or about 0.92% of its shares, at prices ranging from Rp1,250 to Rp3,000 per share between 20 October 2026 and 19 January 2027. From the Sinar Mas Group, DSSA has set aside Rp1 trillion for a buy-back running from 19 October 2026 to 18 January 2027, aiming to maintain investor confidence and support a share price more in line with the company’s fundamentals.

President Prabowo Subianto also held a limited meeting at Merdeka Palace on Monday, attended by Financial Services Authority (OJK) Board of Commissioners Chair Friderica Widyasari Dewi. Prabowo called on the OJK to take tougher action against capital-market offenders, particularly those involved in coordinated trading that could move share prices unnaturally. The OJK has pledged to continue reforms to improve transparency, liquidity and enforcement.

Friderica said firm law enforcement was expected to deter offenders and protect the market’s credibility, particularly as the number of domestic retail investors has reached 32.7 million investor identification numbers (SIDs). Investors will be watching the OJK’s actions to judge how seriously the reforms are being implemented ahead of MSCI’s final decision in June 2027.