JCI Closes Lower as Market Awaits MSCI Review Outcome
The Jakarta Composite Index (JCI) closed lower on the Indonesia Stock Exchange (IDX) today (11/8). Market participants are awaiting the results of MSCI Inc.’s review of global equities, including Indonesia, in August 2026.
“The market is inclined to await the MSCI rebalancing review in August, scheduled for 12 August 2026,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in Jakarta on Tuesday.
The JCI closed down 97.49 points, or 1.53 percent, at 6,267.88. Meanwhile, the LQ45 index of 45 leading stocks fell 8.34 points, or 1.32 percent, to 625.79.
Market participants are hoping the government and regulators will provide an opportunity for MSCI to promptly lift the freeze status on Indonesian equities in the August 2026 Index Review.
The results of the MSCI review are scheduled to be announced on 12 August 2026 at approximately 11.00 p.m. Central European Summer Time (CEST), or 13 August 2026 at approximately 4.00 a.m. Western Indonesia Time (WIB).
The announcement will include a list of stocks entering and leaving a number of global equity indices. Index changes resulting from the MSCI review will take effect after market close on 31 August 2026.
Additionally, the process surrounding the appointment of the definitive candidate for Bank Indonesia (BI) Governor provided a positive influence on the JCI after Destry Damayanti emerged as the sole candidate for BI Governor, offering certainty following the resignation of Perry Warjiyo.
“The main challenge is maintaining BI’s independence while supporting the government’s economic growth agenda,” said Nico.
Meanwhile, Asian regional markets moved mixed amid declining hopes for peace in the Middle East, related to an agreement to reopen the Strait of Hormuz.
US President Donald Trump called on Iran to provide compensation for casualties in the conflict, after Iran demanded compensation for damage caused by US and Israeli attacks. This uncertainty has triggered a rise in global oil prices and raised market concerns about potential increases in inflation and global interest rates.