Indonesia's JCI Falls 1.13% on MSCI Review and Profit-Taking

Indonesia's benchmark Jakarta Composite Index (JCI) closed Thursday down 1.13 percent, settling at 6,301.77 points, as investors reacted to the latest MSCI index review. The LQ45 index, tracking 45 leading stocks, also saw a decrease, dropping 1.05 percent to 627.16.

Phintraco Sekuritas Head of Research Ratna Lim attributed the downturn to several Indonesian stocks being removed during the August 2026 MSCI index rebalancing. This occurred ahead of President Prabowo's state of the nation address concerning the 2027 state budget, alongside typical profit-taking activities.

MSCI, a global index provider, adjusted its Indonesian stock inclusions. Two stocks were removed from the MSCI Global Standard Indexes, with one moving to the MSCI Global Small Cap Index. Another stock was also transferred to the small-cap index, while nine Indonesian stocks were delisted from it. The JCI, after opening higher, entered negative territory before the first trading session and remained there throughout the afternoon.

Nearly all sectors tracked by the IDX-IC fell, with basic materials suffering the steepest drop at 2.93 percent. Energy and industrials also saw significant declines of 2.32 percent and 2.31 percent, respectively. Trading volume on the Indonesia Stock Exchange was substantial, with 26.78 billion shares traded across 1.91 million transactions, totaling Rp1.90 trillion. Out of the stocks traded, 186 advanced, 474 declined, and 303 remained unchanged.

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The decline was partly driven by several stocks being removed during the August 2026 MSCI index rebalancing, ahead of President Prabowo’s state of the nation address on the 2027 state budget, as well as profit-taking.