Jakarta’s benchmark stock index suffered a significant drop Wednesday, triggering a response from Indonesian Finance Minister Purbaya Yudhi Sadewa as investors reacted to a critical assessment of the market’s clarity from Morgan Stanley Capital International. The Jakarta Composite Index (JCI) experienced a correction of nearly 8%, raising concerns about potential impacts to foreign investment in the world’s largest archipelago [[1]], which is currently undergoing a transition towards an industrialized economy [[2]]. Despite the downturn, Minister Sadewa expressed confidence in the nation’s underlying economic strength.
Jakarta – Indonesia’s benchmark stock index experienced a sharp decline Wednesday, January 28, 2026, prompting reassurance from the country’s Finance Minister. The Jakarta Composite Index (JCI) opened sharply lower and continued its downward trend throughout the morning session.
“There’s no need to be afraid,” Finance Minister Purbaya Yudhi Sadewa told reporters at the Presidential Palace in Jakarta.
The JCI plummeted 6.8% at the open, landing at 8,369.48. The sell-off extended into the afternoon, with the index falling as much as 8% to 8,261.79 – a correction of 718 points.
According to Minister Sadewa, the decline was influenced by a recent assessment from Morgan Stanley Capital International (MSCI) regarding concerns over transparency and the calculation of free float for Indonesian equities within the MSCI Global Standard Indexes. This comes despite efforts by the Indonesia Stock Exchange (IDX) to address previous issues.
The Finance Minister expressed confidence that the JCI will rebound, citing the country’s strengthening economic fundamentals. Indonesia’s economy is projected to grow by 5.2% in 2025 and is forecast to reach 6% growth this year.
“The index will recover because we are seriously strengthening the foundations of our economy,” Sadewa stated.
(emy/mij)
