JCI Plunged 7.35% in Early 2026, One of the Steepest Falls in Two Decades

The Jakarta Stock Exchange Index (JCI) or IHSG experienced a sharp sell-off after Morgan Stanley Capital International (MSCI) announced the suspension of the valuation of several indices involving Indonesian stocks.

MSCI made this suspension due to global investors' concerns about data transparency in the Indonesian stock market.

As a result, on Wednesday (January 28, 2026), the JCI closed at 8,320.56, plummeting 7.35% compared to the previous day's closing price.

This sharp correction shows the high sensitivity of the domestic capital market to external factors, particularly decisions from global index providers like MSCI, which greatly influence the flow of global institutional investor funds.

The JCI's plunge on Wednesday (January 28, 2026) was the eighth most severe in the past two and a half decades.

If traced back to 2000, the most massive decline occurred on October 6, 2008, when the JCI plummeted 10.69% in a single day.

Even more severe index declines have occurred in previous years, as seen in the chart.

Following this, the Jakarta Stock Exchange (BEI), together with PT Kustodian Sentral Efek Indonesia (KSEI) and PT Kliring Penjaminan Efek Indonesia (KPEI), with the support of the Financial Services Authority (OJK), reaffirmed their commitment to continue strengthening coordination with MSCI.

"We view the feedback provided by MSCI as an important part of our ongoing efforts to strengthen the credibility of the Indonesian capital market. We understand that MSCI's weighting plays a strategic role in global financial markets and serves as one of the main references for investors," said BEI in a press release on Wednesday (January 28, 2026).

"We are committed to doing our best to increase the weighting of Indonesian stocks in the MSCI index. This commitment is realized through strengthening market data transparency, including providing more accurate and reliable information, in line with global best practices and the expectations of global stakeholders," he continued.

"As part of the concrete steps that have been taken, BEI has been providing comprehensive free-float data announcements through BEI's official website since January 2, 2026, and will continue to do so on a monthly basis," they said.