Business · Markets · 2 hrs ago

Indonesia halts stock trading after benchmark index falls 8%

Indonesia halts stock trading after benchmark index falls 8%

Indonesia’s main stock index fell 8.01% at the start of trading on Friday, prompting the Indonesia Stock Exchange to pause trading.

The halt ran from 8:58 to 9:28 a.m.

Jakarta time, after which trading resumed without a change to the schedule.

The exchange said the pause was meant to keep trading orderly and fair when the index fell by 8%.

The sharp drop followed MSCI’s warning that it may downgrade Indonesia from emerging-market status to standalone-market status.

MSCI has raised concerns about market access, governance and unclear share ownership, as well as suspected coordinated trading.

The possible downgrade is still under consultation, and a final decision is due by June 30, 2027.

Investors are concerned that a downgrade could weaken confidence and lead foreign investors to pull money from Indonesian stocks.

5 sources

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What people are saying

Valentina SimonBEI corporate secretary
The action is taken because the Jakarta Composite Index has fallen by 8%.
via CNBC Indonesia
Indonesia Stock ExchangeStock exchange
The exchange is taking this measure to ensure that stock trading remains orderly, fair and efficient.
via Detik
MSCIIndex provider
These concerns include share ownership structures that continue to be considered non-transparent and alleged coordinated trading activity.
via Detik