DailyDrop Indonesia edition No. 15 · Morning · MON., OCT. 19, 2026 · MSCI proposes downgrading Indonesia to a standalone market, IHSG…

MSCI announced on Thursday, October 15, that it is opening a consultation on a proposal to move Indonesia from an emerging market to a standalone market, according to Katadata, Bisnis.com, and Kontan. MSCI cited an opaque share ownership structure and alleged coordinated trading as the reasons. The freeze on Indonesian stocks in MSCI indexes remains in force. The final decision will be announced by the end of June 2027 at the latest, and Katadata said the consultation runs until April 30, 2027. IHSG opened down 8.01 percent at 5,393, trading was briefly halted, and the index closed at 5,185, or down 11.57 percent, on Friday, October 16. IDX said it respects MSCI’s independence and will ask for an explanation. Said Abdullah voiced his criticism on Sunday, October 18.

MSCI’s classification determines whether global index funds must hold Indonesian stocks. A standalone market means Indonesian stocks leave the emerging-market index, so funds that track that index may sell. That is why a single consultation announcement was enough to push down almost all large stocks in one day.

If your pension fund, mutual fund, or insurance holds Indonesian stocks, its unit value moves with IHSG. The final decision will only come in mid-2027, so a one-day figure is not the end result; check the value of your investment products from the investment manager’s official reports, not from headlines.

Said Abdullah judged the scrutiny from MSCI to be unfair because OJK, IDX, and KSEI have been implementing the recommended improvements step by step. He pointed to FTSE Russell, which keeps Indonesia in the Secondary Emerging Market group, and said foreign investors bought Rp9.18 trillion on the day IHSG fell. He also said MSCI’s policy benefits hedge funds.

MSCI said the opacity of share ownership and alleged coordinated trading remain the reasons for the consultation. Its release stressed that this is not yet a final decision and that market participants’ feedback will be heard. IDX said it respects MSCI’s independence while asking for an explanation of the basis for the announcement.

What is certain is the consultation proposal and the 11.57 percent fall in IHSG; what is not certain is MSCI’s final decision. Two things are worth watching today: whether IDX and OJK announce steps on share ownership transparency, and the direction of IHSG at Monday’s open. Said’s question about the difference between FTSE Russell’s and MSCI’s assessments has not been answered by either.

Katadata, Bisnis.com, Kontan, Telusur, detikcom, Liputan6, Viva, October 15-18, 2026

Economy · Stock market✓ 6 outlets · no final MSCI decision yet

MSCI proposes downgrading Indonesia to a standalone market, IHSG closes down 11.57 percent in one day

MSCI announced its consultation on Thursday, October 15, and IHSG fell to 5,185 on Friday. On Sunday, House Budget Committee chair Said Abdullah said the scrutiny from MSCI was unfair.

MSCI, the global stock index provider, announced on Thursday, October 15, that it is opening a consultation on a proposal to move Indonesia’s classification from an emerging market to a standalone market. The release was cited by Katadata, Bisnis.com, and Kontan. The reasons MSCI gave were a still-opaque share ownership structure and alleged coordinated trading. The freeze on Indonesian stocks in MSCI indexes remains in force until further notice. MSCI stressed that this step is only the start of a formal consultation, not a final decision, and that market participants’ input will be heard. MSCI said the final decision will be announced by the end of June 2027 at the latest, while Katadata said the consultation period runs until April 30, 2027. Bisnis.com wrote that about 6.5 months remain in the consultation window, and Kontan reported that IHSG came under immediate pressure after the announcement. The Indonesia Stock Exchange (IDX) said it respects MSCI’s independence in assessing and classifying markets, but will ask for further explanation of the basis for the announcement, pointing to the reforms already carried out, according to Katadata.

The market reacted on Friday, October 16. IHSG opened down 8.01 percent at 5,393 and trading was briefly halted, according to Katadata. The index closed at 5,185, down 11.57 percent or about 678 points, according to Kontan, Telusur, and several other outlets. CNBC Indonesia called it the deepest daily fall since the 1998 monetary crisis. On Sunday, October 18, Said Abdullah, chair of the Budget Committee of the House of Representatives (DPR), said the scrutiny from MSCI was unfair because the Financial Services Authority (OJK), IDX, and KSEI have been implementing the recommended improvements step by step, according to detikcom, Liputan6, and Viva. He pointed to FTSE Russell, which still places Indonesia in the Secondary Emerging Market group together with 13 other countries, such as China, India, the Philippines, Vietnam, and Saudi Arabia, and asked why the difference in assessment between the two institutions had not been explained. Said also said foreign investors bought Rp9.18 trillion worth of shares on the day IHSG fell. He said he does not reject correction and does not accuse an institution of MSCI’s stature of conspiring to push down IHSG, but judged that MSCI’s policy benefits hedge funds. MSCI is not a religious institution and its officials are not prophets, Said said, and Disway quoted him as asking MSCI not to monopolize the truth. Said also highlighted capital-market reforms and openness of share ownership data, which he said are already under way.

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By the numbers

11.57%fall in IHSG on Friday, October 16

5,185IHSG closing level

Rp9.18Tshare purchases by foreign investors that day, according to Said Abdullah

Word of the day

standalone marketCapital market

MSCI’s category for markets that do not qualify as emerging or developed markets.

Protests against rising living costs took place in France on Saturday, October 17, according to i24NEWS, CNN, France 24, Al Jazeera, LBC, and CBC. Interior Minister Laurent Nunez put attendance at about 550,000, while the CGT put it at 800,000, according to CNN and detikcom. France 24 reported that the Limoges town hall burned and was largely gone, according to prefect Maurice Barate. In Paris, crowds damaged banks and looted several stores, according to Al Jazeera. Prime Minister Lecornu said about 1,200 people were arrested, then Nunez said nearly 1,800 and LBC reported more than 2,000. The number of officers injured was given as more than 150, more than 500, then more than 600 in reports from different times. Macron was scheduled to speak on Sunday evening.

Rising living costs touch almost every household, so a demonstration that starts peacefully easily draws participants from many groups. Riots spreading to cities beyond Paris press the government to respond on two fronts at once: public order and economic demands.

For Indonesians in France or planning to go there, the Indonesian Embassy in Paris is the official reference; Indonesia’s Foreign Ministry said no Indonesian citizens were involved so far, according to detikcom. Check the latest travel advisories before departing.

The French government blamed the radical left and looters, and Macron said the perpetrators will be prosecuted and punished. Lecornu and Nunez emphasized the number of arrests and injured officers.

Organizers and unions such as the CGT stressed that hundreds of thousands of people took to the streets over living costs and public services, with attendance figures higher than the ministry’s count. Al Jazeera and CNN described the protests as led by young people.

Confirmed: the Limoges town hall fire, the looting in Paris, and the arrest of more than 2,000 people. Still moving: the number of casualties and arrests. What to watch today is the content of Macron’s speech and whether the protests continue on a working day.

i24NEWS, CNN, France 24, Al Jazeera, LBC, CBC, October 17-18, 2026

World · France✓ 6 outlets · arrest count still changing

Cost-of-living protests in France turn into riots, Limoges town hall burns and more than 2,000 people detained

Protests against rising living costs spread across France on Saturday, October 17, and turned into riots in several cities, according to i24NEWS, CNN, France 24, Al Jazeera, LBC, and CBC. France 24 reported that the Limoges town hall, a building inaugurated in 1883, was “largely gone” after being set on fire by a masked mob, prefect Maurice Barate said; the roof and bell tower collapsed. In Paris, crowds tried to break into Galeries Lafayette, damaged banks, and looted a Lacoste store and an SFR phone shop, according to Al Jazeera. Interior Minister Laurent Nunez put attendance at about 550,000, while the CGT union put it at 800,000, according to CNN and detikcom. The arrest figures rose over the weekend. Prime Minister Sebastien Lecornu said about 1,200 people were arrested and more than 150 police officers injured on Saturday night, according to CBC and i24NEWS. On Sunday, Nunez said nearly 1,800 people were arrested, almost half of them in Paris, and more than 500 officers injured; LBC and APA later reported more than 2,000 people detained and more than 600 officers injured. President Emmanuel Macron said there is no place for violence in France and that looters will be prosecuted and punished, and he was scheduled to address the nation on Sunday evening, according to LBC and Al Jazeera. The government blamed the radical left and looters, according to CBC. Indonesia’s Foreign Ministry said no Indonesian citizens were involved so far, according to detikcom.

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Inside

IHSG closes down 11.57 percent at 5,185 after MSCI opens consultation on downgrading Indonesia’s statusMSCI cited an opaque share ownership structure and alleged coordinated trading. Final decision by the end of June 2027 at the latest.Economy · ✓ 6 outlets

Cost-of-living protest riots in France: Limoges town hall burns, more than 2,000 detainedInterior Minister Nunez put attendance at about 550,000 and more than 600 officers injured. Macron was scheduled to speak Sunday evening.World · ✓ 6 outlets

UN Secretary-General Guterres meets Prabowo at Hambalang, speech at the Foreign Ministry scheduled for Monday, October 19Guterres arrived on Saturday night, October 17, and was scheduled to visit the TNI peacekeeping headquarters in Sentul to meet soldiers bound for MINUSCA.Politics · ✓ 5 outlets

KPK detains Klaten Regent Hamenang and head of BPK Central Java, PDIP schedules dismissal for MondayKPK seized about Rp1 billion in the sting operation on Thursday, October 15. Komarudin Watubun said the party leadership will recommend dishonorable dismissal.Law · ✓ 5 outlets

PPI survey: 65.4 percent satisfied with the Prabowo-Gibran government, food prices and the economy are the complaintsThe survey of 1,200 respondents in 38 provinces found 32.5 percent dissatisfied. The most common reason for satisfaction was expanded social assistance, at 16.7 percent.Politics · ✓ 5 outlets

PPI announced a survey evaluating two years of the Prabowo-Gibran government on Sunday, October 18, according to Liputan6, Suara Merdeka, Merdeka, and Satelit News. A total of 65.4 percent of respondents were satisfied, made up of 58.6 percent satisfied and 6.8 percent very satisfied. A total of 32.5 percent were dissatisfied and 2.1 percent did not answer or did not know. The survey was conducted from September 26 to October 6 with 1,200 respondents in 38 provinces through face-to-face interviews, with a margin of error of about 2.83 percent. The most common reasons for satisfaction were social assistance (16.7 percent), the arrest of corruptors (10.3 percent), and Sekolah Rakyat (9.8 percent). The most common complaints were a difficult economy (11.8 percent), poorly targeted social assistance (11.4 percent), and high staple prices (10.4 percent).

Survey satisfaction rates are used by the government and the opposition as a measure of public support. This figure depends on who was surveyed and how the questions were framed, so a single survey does not represent every institution.

When looking at a survey, check the number of respondents, the fieldwork dates, and the margin of error before sharing the figures. For this survey: 1,200 respondents, September 26 to October 6, margin of error of about 2.83 percent.

Adi Prayitno said the results show that programs such as social assistance, Sekolah Rakyat, and the crackdown on corruption are appreciated by satisfied respondents.

Dissatisfied respondents’ complaints centered on the economy, the accuracy of social assistance targeting, and food prices. Adi Prayitno said the government needs to focus on those issues in the second year.

The 65.4 percent figure has been published by PPI; comparison with other pollsters is not yet in the reports cited. What is worth looking at is the breakdown of reasons: social assistance and food prices appear on both sides, satisfied and dissatisfied.

Liputan6, Suara Merdeka, Merdeka, Satelit News, October 18, 2026

Politics · Survey✓ 5 outlets · sample selection methodology not detailed

PPI survey: 65.4 percent of respondents satisfied with the Prabowo-Gibran government’s performance, 32.5 percent dissatisfied

Parameter Politik Indonesia (PPI) announced a survey evaluating two years of the Prabowo-Gibran government on Sunday, October 18. A total of 65.4 percent of respondents said they were satisfied, made up of 58.6 percent satisfied and 6.8 percent very satisfied, while 32.5 percent were dissatisfied and 2.1 percent did not answer or did not know, according to Liputan6, Suara Merdeka, Merdeka, and Satelit News. The survey was conducted from September 26 to October 6 through face-to-face interviews with 1,200 respondents in 38 provinces, with a 95 percent confidence level and a margin of error of about 2.83 percent.

Among those satisfied, the most common reasons were expanded social assistance (16.7 percent), the arrest of corruptors (10.3 percent), and the Sekolah Rakyat program (9.8 percent). Among those dissatisfied, the most common complaints were a difficult economy (11.8 percent), social assistance that is insufficient or poorly targeted (11.4 percent), and high prices of staple goods (10.4 percent). PPI Executive Director Adi Prayitno said the government needs to focus on poverty, economic conditions, food prices, corruption, and the difficulty of finding work in its second year.

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In brief

Persita vs PersijaFan violence at Banten International Stadium in Serang on Saturday night, October 17, injured 11 people and postponed the match, according to Banten Regional Police as cited by detikcom.
Police officer shot by police officerA member holding the rank of Bharatu was shot dead by a colleague with the initials AR at the Polairud headquarters in Pondok Cabe on Friday, October 16; AR was detained and the motive has not been disclosed.
Denmark OpenFajar Alfian/Muhammad Shohibul Fikri won the 2026 Denmark Open after beating Aaron Chia/Soh Wooi Yik 21-8, 21-11 in 31 minutes, according to detikcom and PBSI.
No automatic promotionMinister of Primary and Secondary Education Abdul Mu’ti said automatic grade promotion will no longer apply from the 2027/2028 school year, and PGRI said it agrees, according to CNN Indonesia and detikcom.
Nightclub raidBareskrim and BNN deployed 462 personnel; nine visitors tested positive for etomidate or methamphetamine (sabu), according to detikcom and IDN Times.
False quake warningThe Japan Meteorological Agency withdrew a magnitude 9.9 earthquake warning about eight minutes after issuing it on Friday, October 16, and apologized, according to Kompas.com and Beritasatu.
Nusantara Cultural ParadeAbout 100 kings and sultans took part in the parade at the Bundaran HI roundabout on Sunday, October 18, according to Liputan6 and ANTARA.

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MSCI proposes downgrading Indonesia to a standalone market, IHSG closes down 11.57 percent in one day

By the numbers

Word of the day

Cost-of-living protests in France turn into riots, Limoges town hall burns and more than 2,000 people detained

UN Secretary-General Guterres arrives in Jakarta and meets Prabowo at Hambalang, speech at the Foreign Ministry scheduled for Monday

Klaten Regent Hamenang detained by KPK together with head of BPK Central Java, PDIP ready to dismiss him Monday

PPI survey: 65.4 percent of respondents satisfied with the Prabowo-Gibran government’s performance, 32.5 percent dissatisfied

In brief

Unverified — what we could not confirm

What to watch today