The Indonesia Stock Exchange has capped daily losses at 7% for shares priced at 15 rupiah or more on three boards, following a market sell-off as MSCI reviews the country’s index status.
Under an Oct. 20 revision, shares priced from 11 to 14 rupiah on the main, development and new economy boards can decline by no more than 1 rupiah a day. The 7% cap applies at prices of 15 rupiah or higher. The exchange had lowered the limit from 15% to 7% for shares above 10 rupiah on Oct. 19. The limits are set to end Dec. 31, 2026, while permitted daily gains still range from 20% to 35% by share price.
The Jakarta Composite Index fell 11.57% on Oct. 16, when a sharp opening decline triggered a 30-minute trading halt. Its loss for the week reached 14.91%. The index dropped another 3.64% on Oct. 19 before rising 5.65% to 5,278.89 on Oct. 20, Investing.com’s historical index data show. The exchange rule limits declines in covered shares, but it does not prevent the benchmark from falling.
MSCI opened a consultation on Oct. 15 on moving its Indonesia indexes directly from emerging-market to standalone status. A change would affect portfolios that track major global indexes, but MSCI has made no reclassification decision or announced an effective date.
MSCI cited investors’ concerns about opaque share ownership and suspected coordinated trading, along with insufficient evidence of effective enforcement. It had warned in June that inadequate progress could lead to a review of Indonesia’s classification.
Indonesian authorities have announced broader disclosure of holdings above 1% and a roadmap to raise the minimum free float — shares available for public trading — to 15%. MSCI said institutional investors want to see consistent implementation and evidence of a sustained material impact. The exchange’s price limits do not address those ownership and enforcement concerns.
MSCI’s consultation closes April 30, 2027, and it plans to announce a decision by June 30, 2027.
