economy
January 30, 2026
Indonesian stock exchange CEO resigns after $84 billion market wipe out
The rout was triggered by an announcement on Tuesday by index provider MSCI, warning of a potential downgrade of the country to "frontier" market status.
TL;DR
- IDX CEO Iman Rachman resigned following a market rout and MSCI's warning of a potential downgrade.
- The market lost $84 billion over two days due to concerns about trading transparency.
- MSCI cited "ongoing opacity in shareholding structures" and "concerns about possible coordinated trading behaviour" as reasons for the potential downgrade.
- Indonesian regulators will double the free float requirement for listed firms to 15%.
- The IDX is committed to increasing the weighting of Indonesian equities in MSCI indices.
- Pandu Sjahrir noted the market panicked but suggested it's an opportunity to improve transparency and liquidity.
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