Indonesia’s Stock Market Plummets Amid Clarity Concerns and “Fryer” Activity – January 28, 2026
Jakarta, Indonesia – A meaningful drop in the Jakarta Composite Index (JCI) today, triggering a trading halt, has been attributed to concerns regarding market transparency and manipulative trading practices, according to Finance Minister Purbaya yudhi Sadewa. The JCI fell by over 8% on Wednesday, January 28, 2026.
While acknowledging external pressures, minister Sadewa pointed to a recent assessment by Morgan Stanley Capital International (MSCI) as a key factor.MSCI has raised concerns about the transparency of Indonesian shares and the adequacy of their free float within the MSCI Global Standard Indexes, despite some improvements made by the Indonesia Stock Exchange (BEI).
“The negative news regarding transparency and insufficient free float allows for price manipulation,” Minister Sadewa stated at the State Palace in Jakarta. He further noted the presence of numerous “fryers” – a term used to describe day traders engaging in speculative and possibly manipulative activities – in the Indonesian stock market, potentially at the expense of smaller investors.
Minister Sadewa has given the stock exchange authorities until the end of March 2026 to address the issue of manipulative trading.He indicated that if the BEI fails to adequately address the problem, he will intervene directly through the Financial System Stability Committee (KSSK), which he chairs.
“We are allowing the OJK [Financial Services Authority] and the BEI to address this first. If no progress is made by the end of March, I will take action as chairman of the KSSK,” he explained.
(Source: CNBC Indonesia – https://www.cnbcindonesia.com/market/20260128123500-34-518998/bos-kssk-akui-jci-ambruk-karena-ada-bandar)