IHSG Snaps Winning Streak, Plunges 1.89% to 5,873

The Jakarta Composite Index (IHSG) plunged more than 1% on Tuesday (7/7/2026), snapping a six-day winning streak. According to Indonesia Stock Exchange (IDX) data via IDX Mobile at the close of the second session, the IHSG stood at 5,873.37, down 113.12 points or 1.89% from the previous close of 5,986.50. Transaction value was recorded at Rp 10.55 trillion, with a trading volume of 22.70 billion shares across 1.97 million transactions. A total of 191 stocks advanced, 482 declined, and 116 remained unchanged. All sectors traded lower, with the deepest corrections recorded in the basic materials, property, and consumer sectors. The main laggards weighing on the index included BBCA, BBRI, AMMN, BMRI, and BREN, while TLKM, JECX, UNTR, and ENRG helped cushion the decline. The negative market sentiment was primarily triggered by a warning from S&P Global Indices. In its latest Country Classification announcement, S&P Dow Jones Indices maintained Indonesia’s Emerging Market status but placed the country on the 2027 Watchlist. This means Indonesia is now under review for a potential reclassification to Special Measures or Frontier Market status. The core issue cited by S&P is transparency of share ownership and its impact on market liquidity and reliable price discovery. Global institutional investors have long raised concerns about opaque ownership structures and suspected coordinated trading patterns, which make it difficult to assess genuine free float and question whether market prices reflect fair mechanisms. S&P acknowledged that Indonesian authorities, including the Financial Services Authority (OJK) and the IDX, have taken regulatory steps to address these issues. However, the agency warned that if the problems are not resolved, a downgrade could occur during the 2027 annual review. This warning follows similar pressure from MSCI, which in its June 2026 Market Classification Review maintained Indonesia’s Emerging Market status but downgraded its Information Flow criterion to a category requiring improvement. MSCI highlighted the same structural concerns: opaque shareholding structures, indications of coordinated trading patterns, and a lack of English-language information for foreign investors. MSCI cautioned that if sufficient progress is not visible by its November 2026 Index Review, it will consider further steps, including a potential reclassification to Frontier Market. The pressure has had tangible consequences, with net foreign selling on the IDX reaching approximately US$3.6 billion year-to-date. A downgrade by either MSCI or S&P risks triggering further capital outflows, as passive global funds track indices tied to specific market classifications.