Indonesian markets inch up after authorities move to stem rout on MSCI expulsion...

Indonesian stocks rose 3 percent on Tuesday after hitting a six-year low in the previous session due to a record US$82 billion two-day market drop. The decline was triggered by MSCI, a stock market index provider, warning of possible removal from global indexes. Indonesian authorities introduced measures to curb selling after the rout, which has caused the market to lose about 40 percent of its value this year.

The market regulator halved the daily down limit on stock prices from 15 to 7 percent and set a minimum down limit of Rp 1 on shares priced at Rp 14 or less. MSCI's warning, suggesting a downgrade to standalone status, shocked investors and officials. In response, Jakarta authorities met with MSCI officials to seek clarification on the warning, which arose from concerns over lack of ownership transparency and inadequate measures against coordinated trading.

President Prabowo Subianto also held talks with finance chiefs to address the issue. The Financial Services Authority vowed to enforce regulations against those involved in trading manipulation and other violations. The regulator sanctioned individuals linked to alleged trading fraud, totaling Rp 2.1 trillion ($116.7 million). Additionally, the Indonesia Stock Exchange announced it would exclude stocks with high ownership concentration from its benchmark index. These efforts aim to enhance market transparency, credibility, and governance.