January 29, 2026 | 03:45 pm
TEMPO.CO, Jakarta - The Jakarta Composite Index (IHSG) plummeted 8 percent on Thursday morning, January 29, 2026, prompting the Indonesia Stock Exchange (BEI/IDX) to trigger a temporary trading halt. Coordinating Minister for Economic Affairs Airlangga Hartarto responded to the sharp decline by framing it as a moment for stock market improvement.
Airlangga stated that he would monitor the regulatory actions to be undertaken. "In principle, this momentum should be used to reform capital market regulations," he said at the Coordinating Ministry for Economic Affairs office on Thursday, January 29, 2026.
The IHSG has now faced trading halts for two consecutive days. On January 28, the IDX suspended trading after the index plunged 8 percent, a measure reinstated on Thursday, January 29, 2026, at 09:26 Jakarta Automated Trading System (JATS) time.
The IHSG’s collapse followed a move by MSCI to temporarily suspend the rebalancing or adjustment of Indonesian stock compositions and weights. This decision is an extension of MSCI's ongoing assessment regarding the free float of Indonesian shares.
On Thursday morning, Airlangga received the Chair of the OJK Board of Commissioners, Mahendra Siregar, at his office. The meeting was also attended by Minister of Investment and Danantara CEO Rosan Roeslani, Cabinet Secretary Teddy Indra Wijaya, and State Secretariat Minister Prasetyo Hadi. According to Airlangga, the MSCI adjustment issue was a key topic of discussion during the session.
Airlangga did not elaborate on the specific details of the talks. However, he confirmed that he had already discussed the capital market regulatory reform with Mahendra Siregar. "So, let us just follow the process, as there is already a schedule and previous discussions with MSCI have taken place," he said.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa viewed the suspension of IHSG trading as a temporary shock effect. The state treasurer explained that the current turmoil is a market reaction to the risk of the Indonesian stock exchange being downgraded to frontier market status.
However, Purbaya stated that he would not intervene directly, as he believes Indonesia's economic fundamentals remain robust. "I will not get there because I believe our foundation is solid," he remarked.
Anastasya Lavenia Yudi contributed to the report
Read: IDX to Require Minimum 15% Free Float
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