How badly have Indonesian assets been hit since January?

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Indonesian assets have been hit hard since January, with the Jakarta stock index down nearly 30% and foreign investors selling US$3.89 billion of equities.

Indonesian assets have been “hammered” since January, when MSCI froze the country’s stocks in its indexes and raised the prospect of a downgrade to frontier status. The benchmark Jakarta stock index has fallen nearly 30% this year, foreign investors have net sold US$3.89 billion worth of Indonesian equities in 2026, and the combined market value of those equities has dropped to US$601 billion from more than US$900 billion in January.
MSCI’s January move set off a prolonged period of pressure
MSCI froze Indonesia’s stocks in its indexes in January and flagged concerns over opaque ownership, weak free-float visibility and unreliable trading data. That decision has left the market facing prolonged uncertainty as the review process continues.
The stock market has been one of the weakest globally
The benchmark Jakarta stock index is down nearly 30% this year, making it the world’s worst-performing stock market. That decline reflects the scale of the pressure on Indonesian assets over the past several months.
Foreign investors have pulled money out at a steep pace
Foreign investors have been net sellers of Indonesian equities to the tune of US$3.89 billion in 2026. At the same time, the combined market value of Indonesian equities has shrunk from more than US$900 billion in January to US$601 billion.
The downgrade risk has not disappeared
MSCI extended its review to November and said it would consider options such as a consultation on a downgrade to frontier status if enough progress is not seen by then. That leaves Indonesian assets under continued scrutiny even after the latest delay.

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How badly have Indonesian assets been hit since January?

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