February 2, 2026 | 05:50 pm
TEMPO.CO, Jakarta – Indonesia’s benchmark Composite Stock Price Index (IHSG) fell sharply on Monday, February 2, 2026, sliding 406 points, or 4.88 percent, to close at 7,922.7.
Total transaction value at the close of the second trading session reached Rp28.17 trillion. In the first session, trading volume stood at 50.39 million shares, with nearly 2.95 million transactions recorded.
Market breadth was broadly negative, with 720 stocks declining, 58 gaining, and 36 remaining unchanged.
Oktavianus Audi, Vice President of Equity Retail at Kiwoom Sekuritas Indonesia, said the IHSG, which briefly dropped to around 7,820, came under pressure due to several factors.
One key factor, he said, was market anticipation, particularly among foreign investors, ahead of an official decision from a follow-up meeting between the Indonesia Stock Exchange (IDX) and Morgan Stanley Capital International (MSCI) on Monday. The meeting focused on issues related to market transparency.
Another source of pressure, according to Oktavianus, was the temporary leadership at the Financial Services Authority (OJK) and the IDX.
While the interim appointees are considered market technocrats, he said investors are seeking concrete and convincing policy actions rather than transitional leadership arrangements.
Despite the sell-off, Kiwoom Sekuritas remains confident in the government’s commitment to improving transparency in Indonesia’s capital market, which it believes could help ease market pressure.
Oktavianus said investor confidence would likely improve if regulatory follow-up efforts receive positive signals from MSCI, alongside stronger supervision and policies aimed at boosting market liquidity.
Kiwoom Sekuritas also assessed that the likelihood of a trading halt remains low. This outlook is supported by several liquidity-enhancing measures, including the sovereign wealth fund Danantara’s plan to increase investment activity in the Indonesian stock market, particularly in MSCI constituents with large free floats and high liquidity.
Additional measures include plans to raise insurance companies’ equity investment limits from the current 20 percent cap, especially for large-cap and MSCI-listed stocks, and efforts to strengthen exchange-traded funds through market maker fee subsidies.
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