Stocks Rebound as Composite Index Rises 1%
Jakarta, CNBC Indonesia — The Jakarta Composite Index (IHSG) was trading in positive territory midway through the first session on Thursday. At 9.56am Western Indonesian Time (WIB), it stood at 5,381.43, up 53.07 points, or 1.00%.
The index had earlier plunged by as much as 2% at the opening. After opening lower at 5,247.98, it recovered quickly, rising steadily to reach an intraday high of 5,382.36 shortly before 10am.
Trading was active. By 9.56am, volume had reached 100.26 million lots, with transactions valued at Rp4,467.35 billion.
On Thursday, market participants were monitoring several significant domestic and international developments. These included Bank Indonesia’s (BI) decision to keep its benchmark interest rate unchanged, alongside new measures intended to encourage bank lending.
Investors were also watching President Prabowo Subianto’s remarks at a Plenary Cabinet Meeting, including his response to the threat of Indonesia’s stock market being downgraded by global index provider MSCI. Overseas, renewed inflation growth in the UK and a surge in French government bond yields were among the factors drawing attention.
Prabowo commented on MSCI’s statement that it was considering changing Indonesia’s stock-market classification from Emerging Market to Standalone Market. He described the statement as pressure intended to frighten Indonesian market participants.
“We still face a lot of disruption; we keep being obstructed in all sorts of ways. There’s MSCI and various other things—they want to scare us,” Prabowo said, as quoted by CNBC Indonesia on Wednesday (21 October 2026).
MSCI is reviewing the possibility of reclassifying Indonesia from an Emerging Market to a Standalone Market. The proposal remains under consultation with market participants until April 2027, with a final decision due no later than 30 June 2027.
Despite considerable pressure on the stock market, Prabowo said Indonesia would not be deterred by these challenges.
Market participants will continue to follow the capital-market reforms being implemented by Indonesian authorities, particularly those concerning share-ownership transparency and enforcement of trading rules. The measures are in focus ahead of MSCI’s final decision in June 2027.