Indonesia Shares Sink to 2-Month Low on MSCI Warning

2026-01-28 03:17 By Farida Husna 1 min. read

Indonesia’s IDX Composite plunged 482 points, or 5.3%, to 8,502 on Wednesday morning, erasing gains from the prior two sessions and hitting its lowest since late November.

The sell-off followed MSCI Inc.’s warning that Jakarta could face a downgrade to frontier-market status, citing concerns over investability and concentrated ownership of listed firms.

The index compiler said it would pause certain changes until regulators address these issues.

Also, caution mounted ahead of key domestic data next week, including January inflation, December trade, and Q4 GDP.

Meantime, debate over cost-benefit and diplomatic relations grew after Indonesia joined the Board of Peace, with reports that President Trump requested a USD 1 billion contribution for permanent membership.

All sectors fell, dragged by infrastructure, property, and basic materials.

Major losers included Bumi Resources (-14.5%), Telkom Indonesia (-6.6%), Bank Mandiri (-2.5%), Bank Central Asia (-2%), and Alamtri Resources (-1.8%).



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