Shockwave in the Indonesian Stock Market: MSCI ‘Free Float’ Proposal Triggers Mass Sell-Off, Blue-Chip Weights Threatened

JCI Plunges Deepest in Six Months Amid Global Index Recalibration Jitters
The rally on the Indonesia Stock Exchange (IDX) came to an abrupt end on Monday, October 27, 2025. After weeks of setting new records and building strong bullish sentiment, the domestic stock market was rocked by a mass sell-off that triggered panic on the trading floor. The Jakarta Composite Index (JCI) plunged by up to 3.8%, marking its deepest daily fall in over six months. At the close of trading, the index corrected sharply to 8,055 points, losing more than 2.6% from the previous session.

This drastic decline felt all the more surprising as it occurred just days after the market reached its peak euphoria. On Friday, October 24, 2025, the JCI had touched an all-time intraday high of 8,351.06. The stark contrast between Friday’s record high and Monday’s crash underscores how quickly investor sentiment can reverse. The optimism, previously driven by Bank Indonesia’s stable monetary policy and strong domestic investment flows, seemed to evaporate in an instant.

The primary trigger for this market shock was the circulation of a consultation paper from the global index provider, MSCI Inc., dated September 2025. The document sparked deep concern among investors regarding a potential re-weighting of Indonesian stocks in global benchmark indices due to a proposed change in the methodology for calculating ‘free float’.

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