Video: MSCI Turmoil — Will Selling Pressure on Banking Stocks Continue?

Jakarta, CNBC Indonesia — Global financial market participants are continuing to monitor the direction of US central bank interest-rate policy at the Federal Open Market Committee (FOMC) meeting on 27–28 October 2026.

Elvan Chandra Widyatama, an FX analyst at CNBC Indonesia Research, said the FOMC’s decision would influence the direction of global financial markets as a whole, including Indonesia, as well as the Jakarta Composite Index (IHSG) and the rupiah. Markets currently expect the Fed to keep the federal funds rate (FFR) at 3.75–4%, after raising it by 25 basis points in September 2026, although a further increase in December 2026 remains possible.

If US interest rates rise, emerging markets, including Indonesia, need to be alert to continued foreign capital outflows, which could affect the IHSG and the rupiah. Domestically, market participants are also paying close attention to the management of the state budget, including its deficit, as an indicator of Indonesia’s economic fundamentals that could also influence foreign investor flows.

Meanwhile, foreign investors continue to be net sellers in the Indonesian market following MSCI’s assessment, prolonging pressure on the IHSG and the rupiah, although buying by domestic investors has slightly limited the market’s losses.

What impact will the Fed’s policy have on the IHSG and the rupiah? How will MSCI affect banking stocks, and which sectors may still offer opportunities? Aulia Wardhani discusses these questions with Elvan Chandra Widyatama, an FX analyst at CNBC Indonesia Research, on Squawk Box, CNBC Indonesia (Monday, 26 October 2026).