Breaking: JCI Falls 1%
Jakarta, CNBC Indonesia – The Jakarta Composite Index (JCI) weakened again during the first trading session today. At 09:35 WIB, it stood at 5,209.5, down 69.39 points, or 1.31%.
The JCI had opened higher at 5,310.85 and briefly reached a daily peak of 5,326.96, but selling pressure then pushed it steadily lower. The day’s low was recorded at 5,204.79.
The index fluctuated between 5,230 and 5,300 around the middle of the session. After rebounding towards 5,270–5,280, it came under renewed pressure and moved towards the 5,210 area.
Trading volume stood at 90.27 million lots, with transactions valued at Rp5,237.63 billion.
Market participants are expected to monitor how the Indonesia Stock Exchange (IDX), the government and Danantara respond to MSCI’s announcement, alongside share buybacks by several conglomerate-owned companies and President Prabowo Subianto’s direction to strengthen enforcement of capital-market rules.
Indonesia’s financial markets on Wednesday (21 October 2026) remained in the shadow of several significant domestic and international factors. Investors’ main focus was on Bank Indonesia’s (BI) interest-rate announcement, while China’s central bank decision to hold rates and the release of UK employment data also influenced market sentiment.
Market optimism was mainly driven by Danantara’s plan to increase its holdings in several state-owned enterprises (SOEs) with strong fundamentals. Danantara chief executive Rosan Roeslani said falling share prices presented a long-term investment opportunity. He said bank shares were now relatively cheap, with an average price-to-book value (PBV) below one, despite the banking sector remaining healthy and offering attractive dividends. Purchases would be made gradually, taking market conditions into account. The plan was bolstered by the IDX’s proposal to exclude highly concentrated shareholdings (HSC) from JCI calculations, as well as President Prabowo’s instruction for the Financial Services Authority (OJK) to tighten capital-market enforcement.
However, concerns over MSCI have not fully receded. Fears that Indonesia could be downgraded from Emerging Market to Standalone Market were the main trigger for heavy selling last week. The market is now awaiting the actual implementation of Danantara’s share purchases and watching to see whether the rally in SOE shares can continue.
The focus is now on BI. Its Board of Governors meeting, which began on Tuesday, is due to announce its interest-rate decision today, amid a rupiah that had at one point again breached Rp18,000 per US dollar. A CNBC Indonesia Research poll of 13 institutions found that 10 expected BI to raise its rate by 25 basis points to 6.00%. The other three forecast that it would remain at 5.75%. If implemented, the increase would be the first after BI held rates steady for three consecutive months, following cumulative increases of 100 basis points in May and June 2026.