Jakarta. Jakarta stock index clawed back into positive territory on Friday, staging an early rebound after a bruising selloff a day earlier that triggered its second trading halt of the year, as investors cautiously returned amid assurances of market reforms and stabilization measures.

Jakarta Composite Index (JCI) rose 76 points, or 0.91%, to 8,308 in early trade, moving within a range of 8,280 to 8,382.

In the first 10 minutes of trading, volume reached 5.16 billion shares with a turnover of Rp 3.9 trillion ($233.19 million), across more than 354,000 transactions. Advancers outnumbered decliners, with 512 stocks gaining, 107 falling, and 83 unchanged.

The rebound followed a sharp drop in the previous session, when the JCI slid 1.06% to close at 8,231 after briefly plunging to an intraday low of 7,481 and triggering a second trading halt in 2026.

BRI Danareksa Sekuritas said market pressure remained evident, citing continued foreign net selling of Rp 5.11 trillion, although the pace of outflows has begun to ease following announcements by the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) on stabilization steps to address MSCI’s concerns over market investability.

“Technically, a limited rebound remains possible with the nearest resistance at 8,400. However, ongoing foreign selling pressure remains the main risk factor, with support seen at 7,956–8,000,” BRI Danareksa wrote in its Friday note.

Pilarmas Sekuritas Investindo echoed the view that selling pressure has started to subside, noting that the index had earlier touched an 8% decline before closing down just 1% in the previous session. The firm said the sharp correction was increasingly seen by investors as a buying opportunity, prompting selective accumulation of fundamentally strong stocks.

“This was not only retail investors stepping in, but also institutions and conglomerates moving quickly to absorb supply, which led to several stocks rebounding swiftly,” Pilarmas said.

As part of broader capital market reforms, OJK will impose a minimum free float requirement of 15% for all listed companies on the IDX, covering both new listings and existing issuers. The move comes after MSCI froze Indonesia-related indices due to concerns over transparency, free float levels, and concentrated ownership structures.

In the short term, the policy could pressure stocks with low free float as controlling shareholders may need to release shares to the public, potentially increasing volatility, particularly among small-cap names. However, regulators and analysts argue that higher free float should improve market liquidity, narrow bid-ask spreads, and support healthier price discovery over time.

Pilarmas added that from a governance perspective, the policy encourages more open and accountable ownership structures, even though it may reduce flexibility for controlling shareholders.

The government is also set to issue regulations on the demutualization of the IDX in the first quarter of 2026, a reform expected to strengthen the bourse’s governance framework and align it more closely with global standards.

Authorities are racing to push through these reforms ahead of MSCI’s next review deadline in May 2026. Without meaningful structural improvements, MSCI could cut Indonesia’s weighting or even reclassify the country from emerging market to frontier market status.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa said the recent market correction was temporary, expressing confidence that Indonesia’s economic fundamentals remain solid. He reiterated his view that the JCI has the potential to reach 10,000.

Coordinating Economic Affairs Minister Airlangga Hartarto described the index slump and MSCI’s decision as a momentum to overhaul Indonesia’s capital market, while Danantara Chief Investment Officer Pandu Sjahrir said the MSCI warning should be seen as constructive pressure rather than something to be blamed.

Elsewhere in Asia, Japan’s Nikkei edged up 0.11% to 53,434 in early trade. South Korea’s Kospi slipped 0.23% to 5,210 before paring losses, while Hong Kong’s Hang Seng fell 0.65% to 27,785. China’s Shanghai Composite also declined 0.62% to 4,131.

On Wall Street overnight, the S&P 500 dipped 0.1% after swinging sharply during the session, down as much as 1.5% at one point. The Dow Jones Industrial Average rose 55 points, or 0.1%, after erasing earlier losses of more than 400 points, while the Nasdaq Composite slid 0.7%.

Add as a preferred source on Google +