MSCI downgrade alert triggers massive tremors in the Indonesian stock market, with the Jakarta index plunging over 10% and triggering a circuit breaker during trading.

Affected by the warning from MSCI that Indonesia's market may be downgraded, the Indonesian stock market experienced a heavy setback for the second consecutive day. In the early trading session on Thursday, the Jakarta Composite Index, the benchmark stock index of Indonesia, once again fell sharply, with the intraday decline widening to 8%, triggering a temporary halt in trading. After trading resumed, the index continued to decline, with the drop expanding to 10%, closing at 7481.99 points, the lowest level since early August 2025. Prior to this, on Wednesday, the index had already fallen by 7.4%, marking the largest single-day decline since April 8, 2025. This market turmoil directly stems from the announcement made by MSCI on Tuesday. MSCI decided to temporarily freeze key index adjustments for the Indonesian stock market, and warned that it may downgrade its market rating from an emerging market to a frontier market. PT Sinarmas Sekuritas Indonesia pointed out in a report that from a technical perspective, there is still a risk of continued decline in the Jakarta Composite Index. It advised investors to wait for signals of market stabilization and closely monitor the regulatory authorities' response to MSCI's decision.