Jakarta. Indonesia’s benchmark Jakarta Composite Index (JCI) slid deep into negative territory on Wednesday following MSCI’s latest assessment of Indonesian equities, plunging 659.67 points, or 7.35%, to close at 8,320.

The index moved within a wide intraday range of 8,187 to 8,596. Trading activity was heavy, with volume reaching 60.71 billion shares and turnover totaling Rp 45.24 trillion ($2.7 billion) across more than 3.9 million transactions. Decliners overwhelmingly dominated the market, with 753 stocks falling, 37 advancing, and 16 ending unchanged.

Despite the broad sell-off, several small-cap stocks posted sharp gains. Wahana Pronatural (WAPO) surged 34.04%, followed by Buana Artha Anugerah (STAR), which jumped 24.80%, Bintang Oto Global (BOGA), up 24.74%, and Bali Towerindo Sentra (BALI), which gained 24.56%.

On the losing side, Bukit Uluwatu (BUVA), Rukun Raharja (RAJA), Impack Pratama Industri (IMPC), and Dian Swastika Sentosa (DSSA) each tumbled 15%.

Investor sentiment turned decisively risk-off after the Indonesia Stock Exchange (IDX) imposed a trading halt at 1:43 p.m. local time, when the benchmark index fell more than 8% to 8,261. The exchange said the halt was aimed at maintaining “orderly, fair, and efficient” trading.

The sell-off followed MSCI’s latest evaluation of Indonesian equities, particularly its review of free-float quality released on Tuesday. While some global investors welcomed the potential use of KSEI’s Monthly Ownership Composition Report as an additional reference, concerns lingered over the reliability of shareholder classification and the transparency of ownership structures.

MSCI noted that despite several minor data improvements by the exchange, core investability issues remain unresolved. Investors have also flagged risks of coordinated transactions that could distort price formation. Stocknow analyst Hendra Wardana warned that “this condition could interfere with proper price discovery and increase the risk of unhealthy market volatility.”

Reliance Sekuritas Indonesia Director Reza Priyambada said the steep decline was driven more by market perception than by fundamentals or currency movements. “The market correction today is significant, even though regional and global markets were previously moving higher amid a weaker US dollar and a stronger yen. From a macro and FX perspective, there was no strong justification for such a deep drop,” he said.

Reza added that Indonesia’s economy remains in recovery and recent policy developments, including the appointment of a new Bank Indonesia deputy governor, had been positively received by the market. However, he cautioned that negative sentiment had spilled over to domestic investors, triggering cut-loss selling that intensified downward pressure. “When local investors exit after prices have fallen sharply, foreign investors may step back in at lower levels,” he said, adding that MSCI has emphasized the need for more transparent and reliable ownership data to restore investor confidence.

Across the region, Asian equities advanced on Wednesday, while gold and silver prices surged ahead of an interest rate decision by the US Federal Reserve. The central bank was due later in the day to announce its latest policy move, with expectations it would keep its benchmark rate unchanged.

In Asia, South Korea’s benchmark index hit a record high, lifted by gains in technology stocks such as chipmaker SK Hynix, which climbed 5.1%. The Kospi rose 1.7% to 5,170. Japan’s Nikkei 225 pared early losses to edge up less than 0.1%, closing at 53,358, supported by gains in SoftBank Group following reports of increased investment in OpenAI.

Hong Kong’s Hang Seng index jumped 2.3% to 27,746, while the Shanghai Composite added 0.3% to 4,151.

Overnight, US stocks ended mixed as investors digested uneven earnings from major companies including UnitedHealth and General Motors. The S&P 500 rose 0.4% to 6,978, surpassing its previous all-time high set earlier this month. The Dow Jones Industrial Average fell 0.8% to 49,003, while the Nasdaq Composite gained 0.9% to 23,817.