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MSCI has previously decided to temporarily freeze adjustments to the key index of the Indonesian stock market and warn that it may be downgraded to an emerging market rating. As a result, the Jakarta Composite Index, the benchmark stock index of Indonesia, fell sharply in early trading on Thursday, with the decline expanding to 8% at one point, triggering a temporary trading halt. After trading resumed, the decline further widened to 10%, closing at 7481.99 points, the lowest level since early August 2025. The index fell 7.4% on Wednesday, marking the largest single-day decline since April 8, 2025. Indonesian brokerage Mandiri Securities stated that this significant drop was due to an announcement made by MSCI on Tuesday, which included temporary measures for the Indonesian market such as freezing some index adjustments and an evaluation scheduled for February 2026. "From a technical perspective, there is still a risk of further decline in the Jakarta Composite Index," Mandiri Securities wrote in their report on Thursday. The brokerage advised investors to wait for signs of market stabilization or easing selling pressure, while closely monitoring regulatory actions in response to MSCI's decision.