Antara News·Indonesia·Monday, October 19, 2026 at 10:59 AM UTC

Govt attributes recent JCI decline to negative market sentiment

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Maria Cicilia Galuh P., Fathur Rochman, Yashinta D

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto said the weakening of the Jakarta Composite Index (JCI) is a natural occurrence when the market faces negative sentiment.

The JCI experienced a turbulent session on Monday, plunging below the 5,000 threshold at opening before recovering slightly to close above the mark.

The morning bell saw the JCI shed 223.23 points—or 4.31 percent—down to 4,961.88, while the blue-chip LQ45 index dropped 5.52 percent to 480.50.

The downward pressure followed an announcement by global index provider Morgan Stanley Capital International (MSCI) that has initiated consultations regarding a potential reclassification of the Indonesian capital market to a "standalone market" status.

“It is normal for the index to fall when there is negative sentiment. However, with the new seven percent 'auto-rejection' regulation in place, the market remained relatively contained, and it closed slightly above the 5,000 mark," Minister Airlangga said at the Presidential Palace complex in Jakarta on Monday.

"Well, that is just how it goes—it goes up and down. It all depends on the prevailing sentiment," he added.

Addressing the MSCI consultation process, which is slated to run through June of next year, Airlangga dismissed the global financial firm's move as mere posturing.

“It is not until June of next year, after all. They are just engaging in a bit of posturing," the minister noted.

To curb extreme market swings, the Indonesia Stock Exchange (IDX)—backed by the Financial Services Authority (OJK)—enforced an asymmetric lower "Auto Rejection" (ARB) limit of seven percent, replacing previous thresholds to maintain orderly and efficient trading.

The regulatory buffer is designed to provide investors with the opportunity to evaluate and digest available information, as well as to manage panic selling.

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