Reuters reported a record two-session fall in Indonesia’s benchmark index after MSCI proposed reclassifying its Indonesia indexes. VnExpress International estimated the selloff coincided with a $5.9 billion decline in the combined net worth of three tycoons.
VnExpress International based its estimate on Forbes wealth figures. It put Robert Budi Hartono’s decline at $3.1 billion across the Oct. 16 and 19 sessions, Prajogo Pangestu’s at $2.2 billion and Low Tuck Kwong’s at $600 million. The figures track estimated net worth, not proceeds from share sales. Forbes’ updated live profiles do not display the historical readings needed to reproduce the calculation.
The Jakarta Composite Index fell 11.6% on Oct. 16 and another 3.6% on Oct. 19, Reuters reported. The combined loss surpassed two-session declines during the 1998 Asian financial crisis. The index rose 5.65% to 5,278.89 on Oct. 20, according to an Indonesian government market report.
MSCI’s Oct. 15 proposal concerns the classification of its Indonesia indexes, which it is consulting on moving from emerging-market to standalone-market status. The index provider cited opaque shareholding, suspected coordinated trading and insufficient evidence of effective enforcement. It said investors wanted to see consistent results from announced measures, including disclosures of holdings above 1% and a planned 15% minimum free float. MSCI has not made a final decision.
The Indonesia Financial Services Authority (OJK) said it imposed fines totaling 2.1 trillion rupiah on parties connected to three listed companies. Its Oct. 16 release cited 1.5 trillion rupiah related to trading in DSSA shares, 500 billion rupiah tied to the BREN public offering and 100 billion rupiah tied to the CUAN public offering. OJK reported market manipulation in DSSA trading; its BREN and CUAN findings involved misleading orders and concentrated allocations in the offerings.
The Indonesia Stock Exchange plans to exclude shares with highly concentrated ownership from its benchmark index calculation. MSCI will accept responses to its proposal through April 30, 2027, and says it will announce a decision on or before June 30, 2027.
