Jakarta's index rebounded 5.7% to 5,278.89 after the exchange cut its daily loss limit to 7% and moved to strip out concentrated holdings. Bank Indonesia decides Wednesday, and forecasts run from a hold to a 50 basis point hike.
President Prabowo Subianto summoned Bank Indonesia governor Destry Damayanti and other market regulators to the palace after MSCI opened a consultation that could strip Indonesia of emerging-market status. Source
Jakarta bounced on a rulebook edit. The Jakarta Composite rose 5.7% on Tuesday to 5,278.89, recovering 282 points after the Indonesia Stock Exchange cut the maximum daily decline to 7% from 15% through year-end. The exchange also said it would strip highly concentrated holdings, about 18% of index weight, out of the benchmark calculation and tighten disclosure for investors owning at least 1%. Monday's 3.6% drop had taken the index to a six-year low of 4,996.61, after an 11.6% fall on Friday. Tuesday won back roughly a third of the points lost, and the index still sits about 10% below its pre-crash level.
