JCI Plunges 8 Per Cent as Rupiah Hits Rp18,021 per US Dollar

The rupiah weakened against the US dollar at the opening of trading on Friday, 16 October 2026. The decline came amid negative sentiment after Morgan Stanley Capital International (MSCI) announced a consultation on potential changes to the classification of Indonesia’s stock market.

According to trading data, the rupiah opened down 83 points, or 0.46 per cent, at Rp18,021 per US dollar. This was weaker than the previous session’s close of Rp17,938 per US dollar.

Permata Bank chief economist Josua Pardede said MSCI’s announcement was one of the factors weighing on the rupiah. Sentiment from the United States, particularly developments in inflation, also affected the Indonesian currency.

“MSCI has proposed changing Indonesia’s status from Emerging Market (EM) to Standalone Market. Feedback from market participants will be accepted until 30 April 2027, with a final decision expected before 30 June 2027,” Josua told ANTARA in Jakarta on Friday.

MSCI reviews Indonesia’s stock-market classification

MSCI announced in June 2026 that it would consider consulting on a reclassification of the Indonesian market if it did not see adequate progress by the November 2026 Index Review.

In its latest update, MSCI said market participants had not reported sufficient and consistent progress across Indonesia’s equity market.

Although a number of reforms have been announced, MSCI said concerns remained about market dysfunction. These included alleged coordinated trading behaviour and a lack of evidence of meaningful enforcement of the rules.

On that basis, MSCI said Indonesia’s classification as an Emerging Market should be reviewed. The global index provider has launched a consultation on a proposal to change the country’s status to Standalone Market.

The consultation is not a final decision. Market participants can submit feedback until 30 April 2027, while the final decision is expected to be announced before 30 June 2027.

US inflation higher than expected

In addition to MSCI’s announcement, the rupiah’s weakness was also influenced by US inflation data indicating that price pressures remained.

Inflation as measured by the US Consumer Price Index (CPI) rose 0.6 per cent month on month in September 2026. This was higher than the 0.4 per cent increase recorded in August 2026, but in line with market expectations.