FX.co ★ IDX Composite Sinks 3.6% After MSCI Review Sparks Selloff

On Monday afternoon, the IDX Composite Index of Indonesia fell by 293 points, or 3.6%, reaching 7,978. This decline halted the record high from the previous week, marking the most significant drop in over six months. The drop followed a consultation paper by MSCI Inc., which expressed concerns about the liquidity of key Indonesian stocks and suggested stricter inclusion criteria, such as excluding those stocks identified for Unusual Market Activity or listed on the Special Monitoring Board. Additionally, investors exercised caution in anticipation of the country's trade data for September and October's inflation figures due this week. However, a rally in U.S. futures provided some relief after Treasury Secretary Bessent announced that President Trump's proposed 100% tariffs on Chinese imports were "effectively off the table," signaling a possible agreement with President Xi Jinping. In parallel, market expectations suggest that the U.S. Federal Reserve may implement further rate cuts this week, following weak inflation data. Most sectors experienced declines, with significant losses seen in Dian Swastika Sentosa (-15.0%), Barito Renewables Energy (-14.2%), and Petrosea (-14.0%).