IHSG Snaps Winning Streak, Falls 1.11% to 5,920

The Indonesia Composite Index (JCI) plummeted by more than 1% during Tuesday’s (7/7/2026) trading, halting a six-day winning streak despite market optimism regarding the domestic stock market’s prospects.

Based on Indonesia Stock Exchange (IDX) data via IDX Mobile at the end of the first session, the JCI stood at 5,920.15, down 6_66.34 points or 1.11% from the previous close of 5,986.50.

Transaction value was recorded at Rp 5.23 trillion, with a trading volume of 12.25 billion shares across 1.14 million transactions. A total of 197 stocks were in the green zone, while 447 stocks weakened and 142 stocks remained stagnant.

All trading sectors weakened, with the deepest corrections recorded in the basic materials, property, and consumer sectors. The primary stocks weighing down the JCI’s performance today included BBRI, AMMN, SMRI, BREN, and BRPT. Conversely, stocks supporting the JCI from a deeper decline included UNTR, JECX, CASA, and AKRA.

Negative sentiment in the Indonesian financial market today specifically stemmed from a warning by S&P Global Indices. The global index provider, S&P Dow Jones Indices (S&P DJI), maintained the Indonesia Stock Exchange’s (IDX) status in the Emerging Market classification. However, in its latest announcement, the institution also issued a serious threat should several issues in the domestic capital market remain unresolved.

In the Country Classification - 2026/2027 Watchlist released on 7 July 2026, S&P DJI placed Indonesia on the 2027 Watchlist. This means Indonesia is now under monitoring by the index provider for a possible change in classification during the 2027 annual review. Indonesia, currently classified as Emerging, faces the potential reclassification to Special Measures/Frontier Market.

The core issue causing S&P DJI to place Indonesia under surveillance is the issue of share ownership transparency and its impact on liquidity and the reliability of price formation in the market. Global institutional investors frequently question the lack of openness regarding share ownership structures in the Indonesian exchange, alongside concerns regarding alleged coordinated trading patterns. Both factors make it difficult for foreign investors to measure the true free float and cast doubt on whether market prices truly reflect fair mechanisms.

The good news is that S&P DJI noted that Indonesian authorities—ranging from the OJK to the IDX—have taken several regulatory steps to address these issues. However, S&P issued a firm note: if the problems are not resolved, Indonesia could be subject to Special Measures or even reclassified as a Frontier Market during the 2027 review.

Conversely, if market transparency and liquidity improve, positive sentiment will flow, and Indonesia’s Emerging Market status will have the opportunity to be maintained.

This warning from S&P DJI comes amidst similar pressure from another global index provider, MSCI, which had previously highlighted issues within the Indonesian exchange. In the MSCI 2026 Market Classification Review released in late June 2026, MSCI maintained Indonesia as an Emerging Market. However, MSCI downgraded Indonesia’s ‘Information Flow’ criteria from ‘no issue’ to ‘needs improvement’.

MSCI highlighted three structural issues almost identical to S&P’s concerns: opacity in share ownership structures, indications of coordinated trading patterns disrupting price formation, and the lack of English-language information availability for foreign investors. The agency warned that if adequate progress is not visible by the November 2026 Index Review, MSCI will consider further steps, including the possibility of reclassifying Indonesia from an Emerging Market to a Frontier Market.

This pressure carries real consequences. Foreign capital outflows from the Indonesian stock market continue, with net foreign selling on the Indonesia Stock Exchange hitting approximately US$3.6 billion year-to-date. A downgrade in classification—by either MSCI or S&P—risks triggering even larger capital outflows, given that global passive funds follow indices tied to specific market tiers.