Jakarta’s stock market faced a turbulent day on january 28, 2026, as the Jakarta Composite Index (JCI) plummeted over 8%, triggering a temporary trading suspension. The sharp decline follows increasing scrutiny of market practices by international investment firm Morgan Stanley Capital International (MSCI), raising concerns about transparency adn potential manipulation of Indonesian equities. The incident highlights vulnerabilities in emerging markets and pressures Indonesian regulators to swiftly address governance issues to maintain investor confidence and stability.Finance Minister Purbaya Yudhi Sadewa has publicly challenged relevant authorities to resolve the situation within a two-month timeframe.
Indonesia’s benchmark stock index experienced a significant downturn on Wednesday, January 28, 2026, prompting concerns about market manipulation and transparency. The Jakarta Composite Index (JCI) fell more than 8%, triggering a trading halt, as investors reacted to negative sentiment.
Finance Minister Purbaya Yudhi Sadewa attributed the market’s struggles, in part, to ongoing issues with stock manipulation within the Indonesia Stock Exchange (IDX). While acknowledging the impact of a critical assessment from Morgan Stanley Capital International (MSCI), he emphasized the need to address illicit trading practices.
MSCI has raised concerns regarding transparency and the calculation of free float for Indonesian stocks included in the MSCI Global Standard Indexes, despite some minor improvements made by the IDX. “The issue stems from a lack of transparency and an insufficient free float, allowing for price manipulation,” Sadewa explained. “There are many speculators in the stock market who are profiting handsomely, while small investors may be disadvantaged.”
The Minister stated that authorities have until March 2026 to crack down on these manipulative practices. Should they fail to do so, Sadewa indicated he would intervene directly through the Financial System Stability Committee (KSSK). The decline in the JCI underscores the sensitivity of emerging markets to concerns about governance and market integrity.
“You handle this,” Sadewa said, referring to the regulatory bodies. “I’ve asked the Financial Services Authority (OJK) to confront the IDX. What month is it? January. If this isn’t resolved by the end of March, I will step in as chairman of the KSSK. For now, we’ll let them do their work.”
(arj/haa)
