MSCI Scrutiny: Hashim Warns Rupiah Could Fall to Rp 21,000
JAKARTA — Hashim Djojohadikusumo, chairman of the advisory board of the Indonesian Chamber of Commerce and Industry (Kadin), has called for the practice of manipulating share prices, known locally as goreng saham, to end. He warned that it could undermine investor confidence and intensify pressure on Indonesia’s capital market amid issues highlighted by Morgan Stanley Capital International (MSCI).
Hashim said concerns about capital-market transparency needed to be addressed promptly to prevent foreign investors from withdrawing funds. An increase in capital outflows, he said, could put further pressure on the rupiah.
“I ask my colleagues at Kadin to please stop these share-price manipulation activities. I earnestly urge that this practice be halted immediately,” Hashim said at Kadin Indonesia’s National Leadership Meeting at the Hotel Borobudur in Jakarta on Thursday (29 October 2026).
Hashim said the government intended to take firm action against share-price manipulation. He cited law enforcement in Turkey, where, he said, 94 people had been arrested in connection with a similar case.
“The government intends to act firmly. There was a similar incident in Turkey yesterday. Turkey had the same problem, and 94 perpetrators have reportedly been arrested by the Turkish police. We must not let this happen in Indonesia,” he said.
According to Hashim, share-price manipulation risks harming domestic investors. He said Indonesia’s capital market had 32.7 million investors. He also said he was dissatisfied with the stock market, including as an investor who owns shares in publicly listed companies.
“We have to be honest: I think almost every Kadin member buys shares. You’re not satisfied, are you? Neither am I. I also own shares in public companies, and I’m dissatisfied. The government should therefore pay attention to this issue,” he said.
Hashim drew attention to shares with a limited public ownership (free float) but an exceptionally high price-to-earnings ratio (PER). He said this was one of the problems that needed to be addressed to improve transparency and ensure fair trading.
“When the free float is restricted and the price-to-earnings ratio is exorbitant and makes no sense, that is the issue in question,” Hashim said.
He warned that failure to address Indonesia’s capital-market problems seriously could affect MSCI’s assessment and foreign investor confidence. If investors pulled their money out of the domestic stock market, pressure on the rupiah could increase.
“This is an extremely serious issue, because if foreign investment leaves our stock exchange, the rupiah could weaken further. I have calculated that it could reach Rp 20,000 to Rp 21,000; some even say Rp 22,000 to the US dollar,” he said.
Hashim also warned that a weaker rupiah could have broad economic and political repercussions. He urged the government and market participants to address transparency problems and put an end to share-price manipulation without delay.
“I think the ones who will suffer are our 32.7 million friends and fellow citizens. I’m sorry, but I want to be frank: this is a very serious issue. We must not let the rupiah reach Rp 21,000–Rp 22,000. That would have extraordinarily negative political consequences,” Hashim said.