Indonesia’s currency had regained some ground by Oct. 21 but remained weaker than before the selloff, as MSCI continued weighing a proposed change to the country’s index status.
BI’s Oct. 21 reference rate put the dollar at Rp17,986, compared with Rp18,052 on Oct. 16. The Oct. 15 fixing was Rp17,948 per dollar, leaving the rupiah 38 rupiah weaker on Oct. 21.
Trading in the Jakarta Composite was halted after the index opened roughly 8% lower on Oct. 16; it was down 11.57% that day. On Oct. 19, the index fell about 3.6%.
The proposed shift is part of MSCI’s review of Indonesia’s index classification, which began Oct. 15. MSCI is considering moving its Indonesia indexes from emerging-market to standalone status. Under that proposal, the indexes would sit outside MSCI’s emerging- and frontier-market groupings; the provider has not approved the change.
MSCI said market participants had raised concerns about assessing share ownership, suspected coordinated trading and limited evidence of effective enforcement. Feedback is due April 30, 2027, and MSCI expects to announce its decision on or before June 30, 2027.
