Indonesia bourse halves price down limit to slow record-breaking selloff (updated)

MSCI

19/10/2026 01:46

Recasts and updates market milestone
JAKARTA, Oct 19 (Reuters) - Indonesia's stock market operator halved the daily down limit on stock prices on Monday as authorities try to put the brakes on the market's heaviest-ever selloff, unleashed by MSCI looking to cut Indonesia from its suite of investable indexes.
The Indonesia Stock Exchange lowered the down limit for stocks to 7% from 15%, effective from Monday until December 31
The move matters because it slows selling in a market in freefall
Selling was triggered when index provider MSCI said on Friday Indonesia was no longer worthy of "emerging market" status and proposed a downgrade to "standalone," which would exclude it from MSCI's global emerging and frontier indexes
A two-day fall of 16% is the steepest such selloff for the Jakarta Composite benchmark .JKSE on LSEG records stretching back to 1990, and heavier than falls through the Asian financial crisis of 1998
A down limit of 1 rupiah applies to stocks worth below 10 rupiah apiece
Sell orders below limit-down prices are automatically rejected by the bourse's trading system
The move was made "to ensure orderly, fair, and efficient securities trading, as well as to mitigate market volatility," the exchange said in a statement
 
     

 (Reporting by Stefanno Sulaiman; Writing by Martin Petty; Editing by Christian Schmollinger)
 ((martin.petty@tr.com))