Jakarta.The Indonesia Stock Exchange (IDX) said it is intensifying engagement with global index providers to address concerns over market structure and transparency, following a sharp sell-off that rattled investor confidence and triggered a leadership shake-up at the bourse.

IDX Director of Development Jeffrey Hendrik said the exchange has closely reviewed recent market developments and feedback from international index providers, adding that the input has been compiled and will be acted upon promptly.

“We are closely monitoring recent developments and what global index providers expect from Indonesia’s capital market,” Jeffrey said at a press conference in Jakarta on Saturday. “We have communicated with index providers, gathered all feedback, and will deliver follow-up measures as quickly as possible to provide comfort and protection for both global and domestic investors.”

Jeffrey said the effort reflects IDX’s commitment to maintaining investor confidence and strengthening market quality, particularly in terms of transparency and governance.

His comments come after Indonesia’s benchmark Jakarta Composite Index (JCI) suffered one of its most volatile weeks in recent years. During the Jan. 26–30 period, the index slid 6.94% week-on-week to close at 8,329.61, down from 8,951.01 the previous week, according to IDX data. Market capitalization fell 7.37% to Rp 15,046 trillion ($894 billion), from Rp 16,244 trillion.

Volatility peaked midweek. On Wednesday, Jan. 28, the JCI plunged as much as 8% intraday, forcing the exchange to temporarily halt trading. A day later, the IDX imposed two additional trading halts after the index again dropped sharply.

The sell-off was triggered by an announcement from MSCI Inc., the global index provider, which introduced interim measures linked to its assessment of the free float of Indonesian-listed companies. The announcement unsettled investor sentiment and sparked heavy selling pressure across the market.

In its assessment, MSCI said that despite minor improvements to the IDX’s free-float data feed, fundamental investability risks remain. These include the potential for coordinated trading behavior that could impair price formation and amplify volatility. MSCI called for more transparent and reliable ownership data, including possible monitoring of excessively concentrated shareholdings, to support a more robust evaluation of free float and market accessibility.

As an interim step, MSCI said it would freeze several index-related changes for Indonesian securities with immediate effect. The freeze covers upcoming index reviews, including the February 2026 rebalancing, and is intended to reduce index turnover and investability risks while giving market authorities time to deliver what it described as “meaningful transparency improvements.”

MSCI warned that if progress proves insufficient by May 2026, it would reassess Indonesia’s market accessibility status. Subject to further consultation, the review could result in a reduction of Indonesia’s weight in MSCI Emerging Markets indexes or, in a more severe scenario, a potential reclassification from Emerging Market to Frontier Market.

Against this backdrop, Indonesia’s capital market leadership underwent an unprecedented shake-up. On Friday morning, Jan. 30, IDX President Director Iman Rachman announced his resignation, citing responsibility for recent market conditions. Later that evening, Financial Services Authority (OJK) Chairman Mahendra Siregar also stepped down, along with two senior officials overseeing capital markets supervision. OJK Vice Chairman Mirza Adityaswara subsequently tendered his resignation.

In response, the OJK appointed interim members of its board of commissioners to ensure leadership continuity and maintain smooth regulation and supervision of the financial sector.

Finance Minister Purbaya Yudhi Sadewa confirmed on Saturday that Jeffrey Hendrik had been appointed interim president director of the IDX through an internal mechanism, following approval by the exchange’s board of commissioners.

Jeffrey said the formal announcement of his interim appointment would be made before the start of trading on Monday, Feb. 2. He declined to comment on potential candidates for the permanent role, asking reporters to wait for further updates.

He also sought to reassure market participants that all IDX operations would continue as normal and that decision-making processes would not be disrupted during the leadership transition.

“We reaffirm our commitment to building a world-class capital market — not only comparable in terms of trading value and market capitalization, but also in transparency and governance,” Jeffrey said.

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