Indonesia’s Stock Market Hits Second Trading Halt as IHSG Plummets 8%

Kuala Lumpur, El Sky News – The Indonesia Stock Exchange (IDX) was forced to trigger a mandatory trading halt for the second consecutive day on Thursday, January 29, 2026, as the Jakarta Composite Index (IHSG) spiraled downward amid growing investor anxiety.

Market Trigger and Timing

The suspension was activated at 09:26:01 WIB after the IHSG plunged 8%, hitting a low of 7,654.66. Following the emergency protocol established by the Financial Services Authority (OJK), all trading activities were frozen for 30 minutes to allow the market to stabilize. Trading resumed at 09:56:01 WIB.

Root Causes of the Panic

Market analysts attribute this sharp decline to a “perfect storm” of negative sentiment surrounding Indonesia’s capital markets:

• MSCI Rebalancing Delay: The decision by Morgan Stanley Capital International (MSCI) to postpone the rebalancing of Indonesian indices has severely dented investor confidence.
• Transparency Concerns: Rumors regarding the transparency of “free float” share ownership have sparked fears that Indonesia’s market status could be downgraded to a Frontier Market.
• Massive Foreign Capital Outflow: Global investors have initiated heavy sell-offs, particularly targeting blue-chip stocks such as Bank Central Asia (BCA) and Telkom Indonesia.

Market Data at a Glance

The sell-off was widespread, leaving very few sectors untouched.

Regulatory Response

Under the 2025 IDX Board of Directors decree (Kep-00002/BEI/04-2025), the exchange is required to halt trading for 30 minutes if the index drops by 8%. If the slide continues to 15%, a second 30-minute halt is triggered. At a 20% drop, the market is suspended for the remainder of the day.

Authorities from the OJK have urged investors to remain calm, stating that while market volatility is high, the underlying fundamentals of the Indonesian economy remain resilient. ( Rahul Rezky )