February 13, 2026 | 09:24 am
TEMPO.CO, Jakarta - Acting director of the Indonesia Stock Exchange (IDX), Jeffrey Hendrik, acknowledges the recent high volatility in the domestic stock market over the past two weeks. Various developments triggered the turbulence, particularly after Morgan Stanley Capital International (MSCI) published its evaluation of Indonesia's position in the global index on January 28, 2026.
"On January 28, MSCI released a publication to the public, involving at least two aspects, namely the freeze for Indonesia and the potential downgrade of Indonesia from the Emerging Market," said Jeffrey during the Bloomberg Technoz Economic Outlook 2026 forum at the Financial Hall, South Jakarta, on Thursday, February 12, 2026.
He likened the current market condition to an airplane experiencing turbulence. "There is only one option, flying lower is not the right choice, the only choice is to fly higher," he said.
According to him, the current situation is the right moment to make significant improvements in the stock market. Jeffrey mentioned that communication with MSCI has actually been ongoing since October 2025.
Until January 2026, IDX had held five meetings with the global index provider. In early January, the exchange also provided updates regarding the classification of investors, including disclosure of share ownership above 5 percent.
Following the January 28 publication and increased market pressure, IDX took several mitigation steps. Trading was temporarily halted through a trading halt mechanism before the market gradually recovered. During the same period, there were changes in the leadership structure at IDX and the Financial Services Authority (OJK).
Jeffrey stressed that the exchange's priority is to ensure that trading mechanisms continue to run smoothly and are not disrupted by the ongoing dynamics. He stated that until now, the trading system and processes in the capital market have continued as they should.
Since February 2, IDX has resumed meetings with MSCI, followed by the submission of technical documents on February 5 and further meetings on February 11. However, he emphasized that the details of the discussions and the conclusions from the series of meetings are confidential and cannot be disclosed to the public.
As part of the improvement, IDX has submitted several proposals, not only to MSCI but also to FTSE and the public. The initiatives include the obligation to disclose share ownership above 1 percent, refinement of investor data to be more granular with 28 types of classification, an increase in the minimum free float requirement from 7.5 percent to 15 percent, and the publication of a shareholder concentration list. All these steps are said to have received support from various stakeholders.
Jeffrey emphasized that the Indonesian capital market has repeatedly faced pressure from both external and internal factors, including issues of market confidence.
He mentioned various past events, from the U.S. tariff policy announced before Eid, which caused pressure, to the Covid-19 pandemic and the Jiwasraya case, and finally, the 1998 crisis. According to him, each of these challenges has become a moment to strengthen the foundation of the national capital market.
Read: Indofood Removed from MSCI Main Index in Rebalancing Review
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