JCI Weakens as Markets Assess MSCI's Latest Index Changes

The Jakarta Composite Index (JCI) weakened on Thursday as investors reacted to MSCI's latest review of Indonesian stocks. The JCI opened higher but fell 33.46 points, or 0.52%, to 6,340.39 by 9:15 a.m. Jakarta time. The LQ45 index, tracking 45 blue-chip stocks on the Indonesia Stock Exchange, dropped 4 points, or 0.63%, to 629.84.

Experts noted the potential for a breakout above 6,377 and a target range of 6,462 to 6,550. However, if the JCI fails to break above 6,377 and falls below 6,308, it could test support levels at 6,269 and 6,247.

In its August 2026 review, MSCI removed two Indonesian stocks from the Global Standard Index, downgraded one to the Global Small Cap Index, and moved another to the Small Cap Index. Nine Indonesian stocks remained in the Global Standard Index, while around 33 remained in the Small Cap Indexes.

The review did not alter the list of emerging-market countries in the MSCI Frontier Emerging Markets Index. Indonesia's government debt stood at Rp10,293.69 trillion as of June 2026, up 21.5% since September 2024. The debt-to-GDP ratio has risen to 41.26%, up from 34.07% in 2020, while interest payments to government revenue increased to 19% from 14.6% in 2022.

US market data showed a positive sentiment following a July CPI that met expectations. However, concerns about potential inflation rise due to rising oil prices persisted. Investors awaited US Producer Price Index (PPI) and Personal Consumption Expenditures (PCE) data for further insights into the Fed's monetary policy decisions.

Geopolitical tensions, particularly between the US and Iran over the Strait of Hormuz, remained a concern. Meanwhile, European and Asian stocks experienced mixed performances, with Wall Street ending mixed.