IHSG Plummets 3.61% Amid Panic Selling Triggered by MSCI-FTSE Revisions

The Indonesia Composite Index (IHSG) opened sharply lower in today’s trading session, Monday (18/5/2026). The index began the day down 94.34 points or 1.40% to the 6,628.97 level. However, just two minutes after the market opened, the IHSG collapsed further by 2.59%, and the decline worsened 40 minutes later, with the index plunging 3.61% (-242 points) to the 6,480 level.

A total of 594 stocks corrected, 82 stocks strengthened, and 61 stocks remained stagnant. Transaction value was recorded at Rp5.68 trillion with a trading volume of 10.43 billion shares across 849,000 transactions.

Shares associated with Prajogo Pangestu remain the primary drivers of the IHSG’s weakness, alongside several other issuers, including DSSA, which have drawn the attention of international index providers MSCI and FTSE. The heaviest pressure on the IHSG since the end of last week stemmed from stocks removed from the MSCI Global Standard Index and the MSCI Global Small Cap Index.

MSCI has officially removed six Indonesian stocks from the MSCI Global Standard Index, namely: PT Amman Mineral Internasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk (AMRT). Additionally, MSCI removed 13 Indonesian stocks from the MSCI Global Small Cap Index.

Shortly after the MSCI announcement, another global index provider, FTSE, also addressed the future of Indonesian stocks included in its indices. In a recent announcement titled “Index Treatment for the June 2026 Index Review” released on Wednesday (13/5/2026), FTSE issued a stern signal regarding the potential removal of stocks with high shareholding concentration (HSC) on the Indonesia Stock Exchange (IDX).

The new FTSE rule was issued following efforts by Indonesian capital market authorities to increase transparency, including the publication of the High Shareholding Concentration (HSC) list. In the document, FTSE Russell emphasised that if a company becomes subject to a shareholding concentration warning from exchange and financial authorities—where floating shares are controlled by only a few parties—the stock will be removed from the index during the next review.

“To ensure the integrity and replicability of the index, FTSE Russell will remove securities affected by a zero price during the June 2026 review, effective from the market opening on Monday, 22 June 2026,” the official announcement stated. This “zero price” policy is adopted because FTSE assesses that the liquidity of HSC stocks tends to deteriorate materially. There are concerns that institutional passive fund managers will be unable to find sufficient counterparties if they are forced to exit such stocks suddenly.

While FTSE has not yet released a specific list of companies at risk, several major issuers appear to be significantly impacted. Two large companies frequently associated with free float and ownership concentration issues, PT Barito Renewables Energy Tbk (BREN), owned by tycoon Prajogo Pangestu, and PT Dian Swastatika Sentosa Tbk (DSSA) from the Sinar Mas group, are under scrutiny as both are on the IDX’s HSC list.

According to Refinitiv data, all trading sectors weakened today, with the deepest pressure felt in the infrastructure, basic materials, energy, and technology sectors. The main contributors to the IHSG’s decline this morning included Bank Central Asia (BBCA), which fell 2.5% and contributed 14.05 index points, and Dian Swastatika Sentosa (DSSA), which hit the auto rejection lower (ARB) limit, dropping 15% to Rp 880 per share, contributing 13.67 index points. Chandra Asri Pacific (TPIA) also hit ARB (-14.88%) at Rp 3,660, contributing 13 index points. Furthermore, Barito Renewable Energy (BREN) fell to the 2,880 level and is no longer the largest market cap issuer in Indonesia, with its contraction contributing 10 index points. AMMN, which was removed from the MSCI index last week, also contributed 9.12 index points to the decline.