Business · Markets · 2 hrs ago
Stocks, bonds and rupiah face pressure as Indonesia works to restore investor confidence
Indonesia’s stocks, government bonds and rupiah are all under pressure, with the benchmark share index falling and the rupiah nearing a record low.
The pressure comes as MSCI has raised concerns about Indonesia’s stock market; the accounts differ on whether the issue is a proposed change in market status or a review of market rules and index changes.
Investors have also been seeking clearer policies and evidence that reforms will be carried out before they regain confidence.
Some large companies have announced share buybacks, but foreign investors continued to sell shares, so the measures have not ended the pressure.
The stock exchange plans to strengthen oversight and investigate suspected price manipulation, including by restricting or suspending trading accounts during investigations.
Regulators say they will improve company information for investors, while the exchange and financial regulator are also preparing wider reforms to restore trust and support fairer trading.
Indonesia’s stocks, government bonds and rupiah have faced selling pressure amid efforts to restore investor confidence.
MSCI’s concerns about the Indonesian market and proposed changes to its status have been linked to the pressure.
The 10-year government bond yield rose above 7.5%, while the rupiah weakened to Rp18,180 per US dollar.
Officials and market bodies have outlined reforms, including changes to trading oversight and disclosure.
Some Indonesian companies have announced or extended share buybacks, but foreign investors continued to sell shares.
- Who
- Indonesian investors and financial markets, alongside the government, regulators and the Indonesia Stock Exchange.
- What
- Stocks, government bonds and the rupiah have faced selling pressure as authorities seek to restore investor confidence.
- When
- The reports were published on October 29, 2026; one article also describes market events in January and February 2026.
- Where
- Indonesia.
- Why
- The reports link the pressure to MSCI’s concerns and proposed changes, as well as uncertainty about policy and market reforms. One official also cited uncertainty over the Middle East conflict as affecting the rupiah.
Prabowo Subianto
Wijayanto Samirin
Response to MSCI
Prabowo Subianto
Prabowo said Indonesia was not afraid of MSCI and would not be intimidated.
Wijayanto Samirin
Wijayanto said the issue was about investor trust, not fear or bravery.
The Jakarta Composite Index briefly reached 4,996.61, its lowest level in six years, according to IDNFinancials.
Bank Rakyat Indonesia announced a share buyback of up to Rp1 trillion for the period through January 21, 2027.
The government raised Rp31.09 trillion in a government bond auction, down 52.1% from the previous auction.
The Jakarta Composite Index fell about 1.3% at the start of trading, while the rupiah was reported at Rp18,180 per US dollar.
- 10-year government bond yield
- Above 7.5%, its highest since October 2022
- Government bond auction
- Rp31.09 trillion raised on October 27, 2026
- Rupiah
- Rp18,180 per US dollar
- Foreign net share sales
- Rp6.67 trillion
- Bank Rakyat Indonesia buyback
- Up to Rp1 trillion, from October 22, 2026, to January 21, 2027
4 sources
What people are saying
Investors are looking for policy certainty and the implementation of capital market reforms in line with MSCI recommendations
This is not about fear or bravery, but about trust or distrust
The rupiah and regional currencies are still being affected by uncertainty over the resolution of the Middle East conflict
We can restrict or suspend individual securities accounts during investigations, which is expected to bring more sustainable market liquidity through more effective oversight