Why did Indonesia's stock market plunge nearly 40% in 2026?

Indonesia's stock market has plunged nearly 40% in 2026 amid concerns raised by MSCI over market transparency, concentrated share ownership and trading practices. MSCI's proposed downgrade to standalone-market status triggered a sharp sell-off. To curb losses, stock exchange halved daily price decline limit to 7% from 15%, while imposing a 1-rupiah limit on shares priced at 14 rupiah or less.