Investors Await MSCI Certainty as IHSG Weakens 0.68% to 6,858

Investors Await MSCI Certainty as IHSG Weakens 0.68% to 6,858

Jakarta, CNBC Indonesia - The Composite Stock Price Index (IHSG) fell again during trading today, Tuesday (12/5/2026), despite showing strength at the market open, where the IHSG surged strongly and even rose by 1%. However, by the end of the second session, the IHSG reversed course and plummeted to 6,858.90, down 0.68%.

A total of 463 stocks weakened, 207 strengthened, and 151 others were stagnant. Trading value reached Rp16.29 trillion, involving 32.97 billion shares in 2.53 million transactions.

On a sectoral basis, the healthcare sector was the biggest drag with a correction of 4.78%, followed by utilities at -2.24% and technology weakening by -4.08%.

From the stock perspective, PT Mora Telematika Indonesia Tbk (MORA) was the heaviest weight on the IHSG, contributing a 24.21-point decline to the index. The MORA stock initially surged strongly with a gain of over 15% and became the main driver of the IHSG. However, shortly after, MORA plunged to hit the auto reject lower limit (ARB) of 15% at 7,650.

Next was Astra International (ASII), which pressured the index by 7.98 points, PT Bayan Resources Tbk (BYAN) by 7.15 points, and PT Barito Renewables Energy Tbk (BREN) by 6.64 points.

Indonesia’s stock performance aligned with movements in the Asia-Pacific region, where most benchmark indices traded in the red. Nevertheless, the IHSG’s performance was one of the worst today, with only South Korea’s KOSPI recording a larger decline, exceeding 2%.

European markets are also expected to open in the red, with several negative sentiments continuing to loom.

Domestically, market participants tended to sell off and adopt a wait-and-see approach ahead of the MSCI review announcement scheduled for today. The market is concerned that Indonesia may face another reduction in weight in the global MSCI index, potentially triggering foreign fund outflows.

Ahead of the announcement, regulators and market participants unanimously view Indonesia’s capital market reforms as potentially causing short-term pressure but believed to have positive long-term impacts.

OJK Commissioner Chair Friderica Widyasari Dewi stated that they are still awaiting the MSCI announcement results, while emphasising that the capital market reform steps taken by the regulator are part of efforts to strengthen market integrity.

“Even if there is short-term adjustment, we see this as short-term pain. But Insha Allah, long-term gain,” Friderica said at the Indonesia Stock Exchange (BEI) building on Monday (11/5/2026).

The Indonesia Stock Exchange acknowledges the potential for a short-term reduction in Indonesia’s weight in the MSCI if no new stocks enter the index.

“If MSCI does that and no new stocks enter the MSCI, in the short term, Indonesia’s weight might drop. But that is short-term pain for long-term gain,” said Jeffrey.

BEI emphasised that capital market reforms will continue, including encouraging issuers to increase free float to meet global standards.

In addition to domestic factors, global sentiment is still weighing on emerging markets after the strengthening of the US dollar and rising US government bond yields, leading investors to reduce exposure to risky assets.

Despite the IHSG pressure, several stocks still supported the index. PT Merdeka Gold Resources Tbk (MDKA) was the main driver with a 2.58-point contribution to the index rise, followed by PT Dian Swastatika Sentosa Tbk (DSSA), PT Chandra Asri Pacific Tbk (TPIA), and PT Pacific Strategic Financial Tbk (APIC).

The rupiah exchange rate began trading this morning at a historic weakening level, reaching Rp17,500/US$.

According to Refinitiv data, the Garuda currency weakened to Rp17,500/US$ at 9:15 WIB. At the open, the rupiah opened in the red with a 0.43% weakening to Rp17,480/US$. The DXY also strengthened 0.21% to 98.115 at the open.

This was triggered by US President Donald Trump stating that the ceasefire with Iran is now “on the brink” after Tehran rejected Washington’s proposal to end the war.

Iran demands an end to the conflict on all fronts, including in Lebanon, compensation for war damage, lifting of the US naval blockade, guarantees of no further attacks, and restoration of its oil exports. Tehran also asserts control over the Strait of Hormuz, a route that typically carries about 20% of the world’s oil and gas supply.

Trump called Iran’s response “completely unacceptable” and said the ceasefire in effect since 7 April is now very fragile. Iran insists its demands are legitimate, while Parliament Speaker Mohammad Baqer Qalibaf warned that Iran’s military is ready to respond to any aggression.