IHSG Opens Down 0.45% in Response to MSCI's New Decision

Jakarta, CNBC Indonesia - The Composite Stock Price Index (IHSG) weakened this morning on Tuesday (21/4/2026). The index opened down 33.82 points or 0.45% at the level of 7,560.28.

A total of 237 stocks rose, 92 fell, and 309 remained unchanged. The value of transactions this morning reached Rp 219.59 billion, involving 528.20 million shares in 44,244 transactions. Market capitalisation also declined to Rp 13,504 trillion.

Barito Renewables Energy (BREN) and Dian Swastatika Sentosa (DSSA) shares recorded the highest selling pressure among large-cap stocks this morning.

Indonesia’s capital market today will digest the announcement from global index provider MSCI. It is known that MSCI announced updates related to the free float assessment for Indonesian securities in its global indices as of 20 April 2026. This announcement is a follow-up to the previous release on 27 January 2026, when it froze the rebalancing of the Indonesian index.

“MSCI notes the market transparency reforms announced by the Financial Services Authority, Indonesia Stock Exchange, and Central Securities Depository Indonesia,” as quoted from the official announcement on the website, Tuesday (21/4/2026).

These reforms include increased transparency for shareholders holding more than 1% as well as more detailed investor classifications.

In addition, regulators have introduced a High Shareholding Concentration (HSC) framework and a roadmap to increase the minimum free float to 15%. MSCI is currently evaluating the scope, consistency, and effectiveness of these new policies in the context of determining free float and investment eligibility.

In the May 2026 index review, MSCI decided to maintain the temporary policy that has been in place for Indonesian securities. This policy includes freezing increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS), as well as not adding new stocks to the MSCI Investable Market Indexes (IMI).

MSCI will also not conduct upgrades between market capitalisation segments, including from small cap to standard. On the other hand, stocks identified under the HSC framework by Indonesian authorities will be removed from the indices in accordance with MSCI’s global policies.

Furthermore, MSCI may use 1% shareholder disclosure data to adjust free float estimates if necessary. However, other new data will not be incorporated into index calculations until the evaluation process is complete and input from market participants has been considered.

This step is taken to limit index turnover and investability risks while allowing time for evaluation of the newly implemented reforms. MSCI emphasised that it will continue to coordinate with market participants and relevant authorities in Indonesia.

Looking ahead, MSCI is open to input from market participants regarding the effectiveness of these new policies. Further updates are expected to be provided in the Market Accessibility Review scheduled for June 2026.

Meanwhile, Asia-Pacific markets opened higher on Tuesday (21/4/2026) trading amid hopes for a resolution to the Middle East conflict, although tensions between Iran and the US continue to escalate.

May delivery West Texas Intermediate (WTI) futures fell 1.72% to $88.07 per barrel at 20:00 ET. June delivery Brent crude oil futures dropped 1.02% to $94.51 per barrel.

South Korea’s Kospi index rose 1.58%, while the Kosdaq index for small companies added 0.90%. Japan’s Nikkei 225 index gained 0.52%, while the Topix was slightly higher. Australia’s S&P/ASX 200 index rose 0.20%.

Hong Kong’s Hang Seng Index futures were at 26,494, higher than the previous close of the index at 26,361.07.

Overnight on Wall Street, S&P 500 and Nasdaq 100 futures each rose 0.1% and 0.2%. Futures related to the Dow Jones Industrial Average rose 70 points, or 0.2%.

During Monday’s regular session, the S&P 500 fell 0.24% and closed at 7,109.14, while the Nasdaq Composite dropped 0.26% and ended at 24,404.39, ending a 13-day winning streak - the longest positive trend since 1992. The Dow Jones Industrial Average lost 4.87 points, or 0.01%, and closed at 49,442.56.