Jakarta. Indonesian stocks opened lower again on Tuesday, with the Jakarta Composite Index (JCI) extending its pullback as investors stayed cautious amid leadership uncertainty at the financial watchdog and a still-lengthy reform process tied to Indonesia’s global market standing.

The JCI slipped 33.96 points, or 0.43%, to 7,888 at the open, trading in a narrow range of 7,872–7,897.

RTI data showed 1.43 billion shares had changed hands in early trade, with a turnover of Rp 1.01 trillion ($60.24 million) across 94,496 transactions. Market breadth was mixed, with 265 stocks rising, 206 declining, and 187 unchanged.

Finance Minister Purbaya urged calm, saying the recent volatility remains within reasonable bounds and is largely linked to the ongoing transition at Financial Services Authority (OJK).

“Let it be. After going up and down, there’s a new transition again, the change of the OJK chair. The market may still be waiting. This is temporary, and there’s still uncertainty over who the chair will be,” Purbaya said on the sidelines of the National Coordination Meeting of central and regional governments in Sentul, Bogor, on Tuesday.

He stressed that Indonesia’s economic fundamentals remain solid and continue to be reinforced by government policies, while expressing optimism about growth prospects in 2026.

From the market reform front, brokerage Pilarmas Investindo Sekuritas said MSCI has delivered initial points and is expected to move into more technical discussions soon, a development it described as encouraging for investors, as the index provider has shown openness to supporting Indonesia’s status as an Emerging Market.

“However, this process will not be easy and will take time during the implementation phase. We believe the JCI is unlikely to return to its previous levels in the short term. A longer adjustment period is needed as these changes take place,” Pilarmas wrote in its research note.

OJK separately said discussions with MSCI have been positive and will continue into technical deliberations, with MSCI providing guidance on methodology and calculations. Together with Bursa Efek Indonesia and Kustodian Sentral Efek Indonesia, the regulator pledged to give regular updates on progress and to keep pushing market transparency.

In meetings attended by OJK,  IDX, KSEI, and Danantara, the regulator said the steps taken are aligned with MSCI’s requests and its eight action programs, particularly on transparency, beneficial ownership disclosure, liquidity, and free float.

OJK,  IDX, and KSEI have proposed solutions to MSCI’s key concerns, including lowering the share-ownership disclosure threshold from above 5% to above 1%, improving investor data classification and transparency, including beneficial owners,  and gradually raising the minimum free float requirement from 7.5% to 15%.

Pilarmas said these measures could have a positive structural impact on Indonesia’s capital market by strengthening credibility and global investor confidence.

“Overall, if implementation is consistent and timely, these policies could improve MSCI’s perception of Indonesia and support medium- to long-term foreign inflows. In the near term, the market still needs short-term policy responses to help stem the current massive selling pressure,” the firm wrote.

Overnight, US stocks rebounded after sharp swings that rattled markets earlier. The S&P 500 rose 0.5%, snapping a three-day losing streak, while the Dow Jones Industrial Average jumped 515 points, or 1.1%, and the Nasdaq Composite gained 0.6%.

Sentiment was shaped by President Donald Trump’s nomination of Kevin Warsh as the next Federal Reserve chair. Warsh’s background as a former Fed governor initially fueled expectations that rates could stay high to fight inflation, though some investors remain skeptical and believe Trump would prefer rate cuts to boost growth, a move that could support the economy but risk higher inflation over time.

Asian markets were broadly higher. Japan’s Nikkei climbed 1.26% to 53,332, South Korea’s Kospi surged 3.22% to 5,114, Hong Kong’s Hang Seng advanced 0.81% to 26,995, and China’s Shanghai Composite rose 0.69% to 4,043.