Iman Rachman, chief government officer of the Indonesia Inventory Trade (IDX), speaks to members of the media in Jakarta, Indonesia, on Friday, Jan 30, 2026. Rachman mentioned he’ll step down following a two-day market rout sparked by MSCI Inc.’s warning of a potential downgrade.
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Indonesian inventory trade CEO Iman Rachman resigned on Friday, following a rout that noticed the nation’s share market lose $84 billion over the previous two days on considerations over a potential downgrade by index supplier MSCI.
In a launch, the Indonesian Inventory Trade mentioned Rachman had stepped down, taking accountability for “latest market situation,” with out elaborating.
At a press convention Rachman mentioned that “I hope that is the very best determination for the capital market. Might my resignation result in enhancements in our capital market,” in accordance with Reuters. “Hopefully, the index, which opened positively this morning, will proceed to enhance within the coming days,” he added.
MSCI on Tuesday warned of a possible downgrade of the nation to “frontier” market standing, from rising market by MSCI, highlighting considerations over buying and selling transparency.
“Buyers highlighted that elementary investability points persist as a consequence of ongoing opacity in shareholding constructions and considerations about potential coordinated buying and selling behaviour that undermines correct value formation,” MSCI mentioned late Tuesday.
The Jakarta Composite rose 1.18% on Friday, after dropping 7.35% on Wednesday and one other 1.06% on Thursday.
A day earlier than his resignation, Rachman advised CNBC that Indonesian regulators had held discussions with MSCI, centered round enhancing knowledge transparency, notably round free float and possession constructions.
On Thursday, Indonesia’s monetary regulator mentioned it could double the free float requirement on listed corporations to fifteen%, responding to MSCI considerations about transparency on the nation’s inventory trade, in accordance with Reuters.
The IDX on Wednesday launched a press release saying that it acknowledged the suggestions by MSCI as a “priceless half” of its efforts geared toward enhancing the credibility of Indonesia’s capital market. “We’re absolutely dedicated to creating our greatest efforts to extend the weighting of Indonesian equities within the MSCI indices,” IDX mentioned.
Chatting with CNBC’s JP Ong, Pandu Sjahrir, chief funding officer at sovereign wealth fund Danatara, mentioned that “what occurred the final two days is nearly like a superb chilly plunge…the market sort of panicked a bit. And what occurs after a chilly plunge? Normally, you repair your self up and also you grow to be refreshed.”
Indonesia’s market has about one billion {dollars} in liquidity per day, Pandu mentioned, including that the market wanted a liquidity of 8 to 10 occasions that quantity.
“The one option to do it’s by means of transparency. Now we have to have the ability to take heed to what the market says, and do not be defensive.”
