[REVISION HISTORY]

Indonesia market volatility and regulatory shifts

Updated 46 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-23 01:02 UTC → 2026-10-25 10:54 UTC · added ~~removed~~

Throughout late August and September 2026, the Jakarta Composite Index (IHSG) and the Rupiah experienced significant volatility. In late August, hawkish signals from Federal Reserve Chair Kevin Warsh regarding inflation heightened expectations for US interest rate hikes, pressuring the Rupiah near the 17,700 per US dollar mark. During September, the IHSG fluctuated as investors balanced foreign accumulation in large-cap banking stocks against global bond selling pressures and geopolitical tensions. The index faced a five-day losing streak in mid-September, closing at 6,461.15 on September 15, driven by capital outflows totaling approximately Rp70.7 trillion. In response, the Indonesia Stock Exchange (IDX) implemented structural reforms effective September 28, 2026, including lowering the minimum stock price from Rp50 to Rp1 to improve liquidity and price discovery. The IDX also revised Special Monitoring Board criteria, removing 92 securities from the list. Additionally, the IDX authorized the resumption of short selling starting October 1, 2026, initially limited to five major stocks including PT Astra International Tbk and PT Bank Central Asia Tbk, restricted to experienced investors. In late September, the IHSG faced downward pressure after Bank Indonesia maintained the BI Rate at 5.75 percent. Following a massive market decline on October 16, 2026, triggered by concerns over a potential MSCI market reclassification from ‘Emerging Market’ to ‘Standalone Market’, the IHSG saw a sharp selloff of over 11% in a single session. To address governance and volatility, the IDX and OJK introduced reforms, including adjusting asymmetric Auto Rejection (AR) limits from 15 percent to 7 percent for certain stocks and removing High Shareholding Concentration (HSC) stocks from the IHSG calculation. Amidst this, the sovereign wealth fund Danantara began purchasing shares in state-owned enterprises to capitalize on favorable valuations.

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