Jakarta. Indonesia’s benchmark Jakarta Composite Index (JCI) slid sharply on Thursday morning as markets reacted to MSCI’s decision to freeze key index adjustments for Indonesian stocks.

The JCI opened at 8,027 and slid 293 points, or 3.65%, moving within an intraday range of 7,884 to 8,049 in early trading.

In the first minutes of the session, trading volume reached 4.18 billion shares with a turnover of Rp 4.39 trillion ($261.95 million) across more than 296,000 transactions. A total of 66 stocks advanced, 557 declined, and 65 were unchanged.

BRI Danareksa Sekuritas said the sharp pressure followed MSCI’s announcement on Tuesday, which imposed temporary treatment on the Indonesian market, including a freeze on several index changes and the February 2026 review. “Technically, the JCI remains at risk of extending its decline, with key support seen at 8,200 to 8,210,” BRI Danareksa wrote in its Thursday note.

The brokerage advised investors to wait for signs of stabilization or easing selling pressure, while closely monitoring follow-up measures from regulators in response to the MSCI decision, as well as the US Federal Reserve’s interest rate decision as the next potential catalyst.

Pilarmas Investindo Sekuritas described the MSCI announcement as a strong warning signal to Indonesia’s capital market authorities to immediately improve reporting systems, particularly regarding unclear ownership structures and potential indications of artificial trading.

If transparency improvements fail to materialize by May 2026, Pilarmas warned Indonesia faces two major risks: a possible reduction in its weighting within the MSCI Emerging Markets Index, which could trigger larger foreign fund outflows, and a more severe risk of a downgrade from Emerging Market to Frontier Market status.

“This would undoubtedly exert massive capital outflow pressure from foreign investors, who have so far placed their funds in large-cap companies included in the MSCI index,” Pilarmas wrote.

Meanwhile, the Indonesia Stock Exchange (IDX) said in a press release that it would promptly follow up on MSCI’s latest decision, stressing that concrete corrective measures are needed beyond normative statements. The exchange added that meaningful reforms would ultimately have positive implications for Indonesia’s capital market.

Overnight, Wall Street was little changed after the Federal Reserve held its benchmark interest rate steady, in line with expectations.

The S&P 500 edged down less than 0.1% from its record high, the Dow Jones Industrial Average added 12 points, or less than 0.1%, and the Nasdaq Composite rose 0.2%.

Fed Chair Jerome Powell said interest rates were “in a good place,” giving policymakers time to assess economic developments, noting that the US economy had once again “surprised us with its strength.”

Across Asia, Japan’s Nikkei slipped 0.11% to 53,301, South Korea’s Kospi initially rose 1.4% to 5,243 before trimming gains, Hong Kong’s Hang Seng fell 0.72% to 27,627, while China’s Shanghai Composite edged up 0.09% to 4,155.

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