The Indonesia Composite Index (IHSG) opened sharply lower by 6.8% to 8,369.48 on Wednesday (Jan 28, 2026), following a stern warning from MSCI regarding the Indonesian stock market. MSCI announced a temporary freeze on index treatment for domestic stocks due to concerns over free float issues and market accessibility.

However, analysts believe this correction is temporary. Lukman Leong from Doo Financial Futures said the decline is largely driven by short-term sentiment rather than deteriorating market fundamentals. "Typically, MSCI-related pressures last only a few days to one or two weeks," he told CNBC Indonesia.

Ekky Topan from Infovesta Kapital Advisori added that mass selling by investors is the main factor behind the drop. He suggested the correction could actually present an opportunity to buy stocks at lower prices.

Oktavianus Audi, VP Marketing, Strategy and Planning at Kiwoom Securities, considered the current market decline normal, with a potential drop of 3-6%, already factoring in the MSCI index adjustments. He emphasized that the IHSG should remain within the 8,400–8,700 range, though passive fund flows could deepen the correction.

Meanwhile, Maximilianus Nicodemus from Pilarmas Investindo Sekuritas warned that the correction might persist longer if regulators do not take swift action. He stressed the importance of transparency in share ownership and coordinated efforts to restore global investor confidence. "This serves as a benchmark for Indonesia's capital market in the eyes of international investors," he said.