The Indonesia Stock Exchange (IDX) reported a notable downturn in the performance of its Composite Stock Price Index (IHSG) during the week of May 11-13, 2026. The IHSG concluded the trading period at 6,723.320, marking a significant 3.53 percent decline from its previous week’s close of 6,936.396.
Kautsar Primadi Nurahmad, the Corporate Secretary of the IDX, highlighted that the overall market capitalization also experienced a substantial decrease. It fell by 4.68 percent, settling at IDR 11,825 trillion, down from IDR 12,406 trillion recorded the previous week.
“The average daily transaction frequency this week also saw a slight adjustment, decreasing by 0.56 percent to 2.53 million transactions from 2.55 million transactions last week,” Kautsar stated in an official release quoted on Saturday, May 16. This indicates a minor shift in investor activity.
Furthermore, the average daily transaction value saw a more pronounced drop of 18.78 percent, reaching IDR 18.82 trillion from IDR 23.05 trillion in the preceding week. Concurrently, the average daily transaction volume declined by 22.01 percent, moving from 45.86 billion shares to 35.76 billion shares, reflecting a notable contraction in trading activity.
Kautsar also pointed out that foreign investors recorded a net sell of IDR 1.531 trillion on the latest trading day. Cumulatively, for the entirety of 2026, foreign investors have registered a substantial net sell amounting to IDR 40.823 trillion, signaling a sustained outflow of foreign capital from the market.
Amidst these market movements, on Wednesday, May 13, the IDX, in collaboration with the Indonesia Clearing and Guarantee Corporation (KPEI), the Indonesia Central Securities Depository (KSEI), and the Financial Services Authority (OJK), provided an update on the development of Indonesia’s capital market concerning the MSCI index rebalancing. This joint statement aimed to address market concerns and provide clarity.
The IDX affirmed that domestic stock trading remains stable and controlled, with no indications of panic selling. Kautsar emphasized that market stability is evident in the relatively sustained transaction frequency and volume, even amidst the prevailing global market dynamics.
He further elaborated, “The current market weakening is viewed as an anticipated part of the global investor portfolio adjustment process. Simultaneously, this presents an opportunity as stock valuations become more attractive compared to the beginning of the year,” suggesting a positive long-term outlook despite short-term dips.
Regarding the removal of several listed companies from the MSCI Global Small Cap index, the IDX sees this as potentially reflecting an increase in the market capitalization of these issuers. However, progression to higher-tier indices is currently delayed due to MSCI’s freeze on adding new Indonesian constituents, impacting the upward mobility of certain companies.
“Nevertheless, regulators and market participants are reaffirming their commitment to continuously strengthen market transparency, governance, and integrity. This collective effort aims to ensure that Indonesian listed companies remain competitive within global indices,” Kautsar stated, highlighting ongoing efforts to bolster market foundations.
Jeffrey Hendrik, the Acting President Director of the Indonesia Stock Exchange, echoed this sentiment, describing MSCI’s latest statement as a positive development. He believes it can significantly reduce an element of market uncertainty, particularly amidst high global volatility driven by geopolitical turmoil, fluctuating commodity prices, and currency movements.
According to Jeffrey, this newfound clarity is expected to serve as a crucial foundation for the future growth of Indonesia’s capital market, fostered collaboratively by all market participants and issuers. It sets a clearer path for sustainable expansion.
The outcomes of the MSCI Review for May 2026, alongside its free float methodology, underscore that each global index provider employs its unique quantitative-factor-based methodologies, which are to be respected. This acknowledges the diverse approaches taken by various index compilers.
“The IDX emphasizes focusing on strengthening market reforms and fostering orderly, fair, and efficient market mechanisms, rather than engaging in ‘index engineering’ to manipulate index valuations,” Kautsar concluded. He added, “Our goal is to naturally encourage compliance with index criteria through the robust reinforcement of market fundamentals.”
Summary
The Indonesia Stock Exchange (IDX) experienced a significant downturn during the week of May 11-13, 2026, as the Composite Stock Price Index (IHSG) fell by 3.53% to 6,723.320. Concurrently, market capitalization contracted by 4.68% to IDR 11,825 trillion, accompanied by substantial declines in daily transaction values and volumes. Foreign investors also contributed to the negative sentiment, recording a net sell of IDR 1.531 trillion on the final trading day.
Despite these challenges, the IDX maintains that the market remains stable with no evidence of panic selling, attributing the volatility to global portfolio adjustments. Regulators are currently focusing on reinforcing market fundamentals, transparency, and governance rather than index manipulation. Furthermore, authorities believe that recent clarity regarding the MSCI index rebalancing will help reduce uncertainty and provide a foundation for future sustainable growth.