The chief executive of the Indonesian Stock Exchange (IDX), Iman Rachman, resigned on Friday, taking responsibility for recent market turmoil that wiped out an estimated $84 billion in value over two days, following concerns about a potential downgrade by index provider MSCI.
In a statement, the IDX said Rachman stepped down “as part of a commitment to accountability towards recent market condition,” without providing further details. The exchange added that all subsequent processes would be carried out in line with corporate governance and regulatory requirements to ensure market stability and continuity.
The resignation comes after a sharp sell-off in Indonesian equities this week. The Jakarta Composite Index fell 7.35% on Wednesday and a further 1.06% on Thursday, before rebounding 1.18% on Friday.
The market rout was triggered by an announcement from MSCI on Tuesday warning that Indonesia could be downgraded to frontier-market status from its current emerging-market classification. MSCI cited concerns over trading transparency, highlighting “ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation.”
Speaking at a press conference on Friday, Rachman said his decision was taken in the interest of the capital market. “I hope this is the best decision for the capital market. May my resignation lead to improvements in our capital market,” he said, according to Reuters, adding that he hoped the market’s positive opening would continue in the coming days.
A day earlier, Rachman told CNBC that Indonesian regulators had been engaging with MSCI, with discussions focused on improving data transparency, particularly around free float and ownership structures.
On Thursday, Indonesia’s financial regulator announced it would double the minimum free float requirement for listed companies to 15%, responding directly to MSCI’s concerns. The IDX also said it viewed MSCI’s feedback as a “valuable part” of its efforts to enhance the credibility of Indonesia’s capital markets and reaffirmed its commitment to increasing the weighting of Indonesian equities in MSCI indices.
Despite the volatility, market participants struck a measured tone. Pandu Sjahrir, chief investment officer at sovereign wealth fund Danantara, described the sell-off as a moment of reset. “What happened the last two days is almost like a good cold plunge,” he told CNBC. “The market kind of panicked a bit. And what happens after a cold plunge? Usually, you fix yourself up and you become refreshed.”
Sjahrir noted that Indonesia’s equity market currently sees around $1 billion in daily liquidity, far below the level needed to support long-term growth. “The only way to do it is through transparency,” he said. “We have to be able to listen to what the market says, and don’t be defensive.”
Separately, the IDX released its market update for the final week of January 2026, highlighting continued growth in retail participation despite the sell-off. As of end-January, the number of capital market investors reached 21.04 million Single Investor Identifications (SIDs), up by more than 673,000 from end-2025. Equity investors rose to nearly 9 million SIDs.
Trading activity was mixed during the week of 26–30 January. Average daily trading value jumped 29.28% to Rp43.76 trillion, while average daily trading frequency rose 1.59% to 3.82 million transactions. However, average daily trading volume fell 3.69% to 63.3 billion shares. Market capitalization declined 7.37% week-on-week to Rp15,046 trillion, while foreign investors recorded net selling of Rp1.53 trillion on Friday, bringing year-to-date net outflows to Rp9.88 trillion.
As Indonesia works to address transparency and liquidity concerns, investors will be watching closely to see whether regulatory reforms can restore confidence and prevent a downgrade that could reshape the country’s standing in global equity markets.