Follow-Up: Indonesian Stocks Slide Another 5% to Six-Year Low; Exchange Halves Down Limit to 7% and Meets MSCI
Indonesian stocks slid more than 5% on Monday to a six-year low and the rupiah weakened, Reuters reported on October 19, after the Jakarta Composite Index plunged 11.6% on Friday — its worst day since 1998 — wiping about $65 billion off market capitalisation in a single session, exchange data showed. The two-day rout followed a warning from index provider MSCI that it may move Indonesia from 'emerging market' to the lower 'standalone' category, citing market dysfunctions including coordinated trading behaviour and a failure to enforce rules.
The Indonesia Stock Exchange on Monday halved its daily down limit on share prices to 7% to slow the selling. Chief executive Jeffrey Hendrik told reporters the exchange's leadership would meet MSCI online later in the day to seek clarification, saying the exchange, the Financial Services Authority (OJK) and most MSCI participants had not expected the announcement and that Indonesia meets all criteria to keep emerging-market status. The exchange had earlier said the MSCI announcement 'was unexpected to us, causing a market panic'.
Bond markets were also hit: traders put the 10-year government bond yield at 7.4%, up from 7.169% on Friday, while the rupiah weakened to 18,040 per dollar, near June's record low of 18,190. According to two government sources, President Prabowo Subianto was expected to meet top financial officials on Monday afternoon to discuss the 'current economic condition'. MSCI had previously warned Indonesia could be relegated to 'frontier' status; the 'standalone' proposal is more severe, and would exclude Indonesian stocks from global indexes tracked by billions of dollars in passive investment. (GSM previously reported MSCI's October 16 downgrade consultation and the first wave of the Jakarta sell-off; this is the latest development.)
Source: GSM · USA (original Chinese edition)
Photo: 图：雅加达市景（资料图）。来源：Wikimedia Commons，CC BY-SA 4.0 / Photo: A Jakarta cityscape (file photo). Source: Wikimedia Commons, CC BY-SA 4.0
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- 2026-10-19Follow-Up: Indonesian Stocks Slide Another 5% to Six-Year Low; Exchange Halves Down Limit to 7% and Meets MSCIThis story
