MSCI Issue Hits IDX Composite, Airlangga Responds

Coordinating Economic Minister Airlangga Hartarto said the IDX Composite (JCI) weakened in Monday’s trading, 19 October 2026, because of negative sentiment in the stock market.

“When there is negative sentiment, it is normal for the market to fall. But with the new regulation setting auto-rejection at 7 per cent, the situation was relatively contained, and the index closed just above 5,000,” Airlangga said at the Presidential Palace complex in Jakarta on Monday.

He was responding to the JCI’s brief drop below the 5,000 level before it moved back above it. The index’s movements, he said, were influenced by issues and sentiment developing in the market.

“It goes up and down. It depends on the issues and sentiment,” he said.

One factor weighing on the Indonesian stock market was an announcement by Morgan Stanley Capital International (MSCI) that it had opened a consultation on the possibility of changing Indonesia’s capital-market classification to a standalone market.

On the possibility of a status change, Airlangga said the process would continue until next year. “It is still June next year. They usually make a little threat,” he added.

The JCI opened 223.23 points, or 4.31 per cent, lower on Monday at 4,961.88. The blue-chip LQ45 index fell 28.06 points, or 5.52 per cent, to 480.50.

The JCI’s decline was described as a knock-on effect of MSCI’s announcement that it was consulting on the possibility of changing the classification of Indonesia’s capital market.

Amid the market turmoil, the Indonesia Stock Exchange (IDX) adjusted the lower auto-rejection limit for shares from 15 per cent to 7 per cent. The policy, supported by the Financial Services Authority (OJK), is in force from 19 October to 31 December 2026.

The adjustment is intended to keep securities trading orderly, fair and efficient while controlling market volatility. It also gives investors time to assess and digest available information before making investment decisions.