The Indonesia Stock Exchange Composite Index (IHSG) plunged 5.2% after 40 minutes of trading in the morning session. Panic selling even pushed the index down 6.53% to 8,393 at the market open on Wednesday (28/1/2026).

This marked the day’s lowest level, while the highest point was 8,596. About 22 billion shares were traded with a total value of IDR 16 trillion, dominated by sell-offs.

A total of 638 stocks declined, 41 gained, and 32 remained unchanged. Major conglomerate stocks fell sharply, becoming the top movers this morning.

Stocks hitting the lower auto reject (ARB) included DSSA (-15%), BUVA (-15%), and PTRO (-14.8%). Other top ARB decliners were COIN (-14.9%), ENRG (-14.9%), UANG (-14.6%), VKTR (-14.6%), BUMI (-14.5%), and GOLF (-13.8%).

Bloomberg data shows IHSG suffered the steepest decline in ASEAN and Asia. The drop was triggered directly by MSCI’s recent announcement highlighting concerns over transparency and reliability of free float data in Indonesia.

Despite minor improvements in BEI’s data system, global investors still see fundamental issues regarding shareholder transparency and potential coordinated trading that could distort fair pricing.

Stockbit Securities reported that MSCI will apply temporary measures to the Indonesian market, including freezing increases in Foreign Inclusion Factor (FIF) and Number of Shares (NOS), pausing the addition of stocks to the MSCI IMI, and halting cross-segment index adjustments. The goal is to reduce index turnover and investability risks while allowing time for transparency improvements.

If improvements are not achieved by May 2026, Indonesia may see reduced weighting in the MSCI Emerging Markets Index or even be reclassified as a Frontier Market.

Henan Securities views the “MSCI inclusion” narrative as temporarily irrelevant. Investor focus will shift back to fundamentals, cash flow, and business quality. HP Securities emphasizes that this is not a short-term issue but a structural warning; the Indonesian market remains attractive, but stock selection is crucial.