Jakarta Composite Rebounds 5.65% as Exchange Plans Index Change

Indonesia’s Jakarta Composite closed Oct. 20 up 5.65% at 5,278.89, rebounding from two steep declines as the country’s stock exchange prepared to change which shares count toward the benchmark.

The close was about 4 a.m. ET (8 a.m. UTC). The index had fallen 11.57% on Oct. 16 and 3.64% on Oct. 19.

The Indonesia Stock Exchange plans to exclude 80 shares with highly concentrated ownership from the index calculation. Together, they account for about 18% of the benchmark’s weight. The shares would remain listed and tradable, and the exchange has not set a date for the change.

The plan follows MSCI’s proposal to change Indonesia’s market classification from emerging-market to standalone-market status. MSCI raised concerns about opaque ownership and suspected coordinated trading. It also said announced reforms had yet to produce consistent results across the equity market. The reclassification remains a proposal.

Feedback on MSCI’s proposal is due April 30, 2027. MSCI plans to decide by June 30, 2027.