January 29, 2026 | 02:59 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa views the temporary trading halts of the Jakarta Composite Index (IHSG) as a short-term shock effect. Purbaya maintained that the current capital market turmoil does not reflect underlying fundamental economic issues.
The State Treasurer explained that the volatility is a market reaction to the risk of the Indonesian stock exchange being downgraded to frontier market status. "The possibility has likely shocked people; our market is being considered a frontier-level market," Purbaya stated at the Coordinating Ministry for Economic Affairs in Jakarta on Thursday, January 29, 2026.
The IHSG trading halt occurred for two consecutive days. On Wednesday, January 28, the Indonesia Stock Exchange (BEI/IDX) suspended trading after the index plunged 8 percent, a scenario repeated on Thursday, January 29, 2026, at 09:26 Jakarta Automated Trading System (JATS) time.
The decline occurred after Morgan Stanley Capital International (MSCI) temporarily froze the rebalancing of Indonesian stock compositions and weights. This move is a continuation of MSCI's ongoing assessment regarding Indonesia's free-float shares.
Purbaya reassured that Indonesia's economic foundation remains robust. "The deficiencies mentioned by MSCI will be addressed by Pak Mahendra (Chairperson of the Board of Commissioners of the Financial Services Authority)," he added.
The Finance Minister also drew attention to stocks exhibiting unusual movements. He emphasized his long-standing warning for the stock market to be purged of manipulative practices involving low-quality or speculative stocks.
The former Chair of the Deposit Insurance Corporation (LPS) advised investors to remain calm. Should they be concerned by market turmoil, he suggested redirecting assets into blue-chip stocks with strong fundamentals.
The trading halt was triggered again on Thursday, January 29, 2026, as the IHSG dropped 8 percent. "BEI is taking this step to ensure that stock trading remains orderly, fair, and efficient, in accordance with Regulation No. II-A and further regulated by BEI Board Decree Kep-00002/BEI/04-2025," stated BEI Corporate Secretary Kautsar Primadi Nurahmad.
This morning, the IHSG opened at 8,027.8 before tumbling to 7,654.6. On the previous day, the index had closed at 8,320.5.
Anastasya Lavenia contributes to the report
Read: IHSG Plunges 8%, Forcing IDX to Halt Trading Again
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