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The National Economic Council (DEN) requests that the Indonesian market reform continue and law enforcement against the alleged forced abuses following the threat of Indonesian stock market classification by Morgan Stanley Capital International (MSCI).

The recommendation goes to President Prabowo Subianto in a meeting with the government's economic ranks at the Presidential Palace, Jakarta Center.

Deputy Chairman Mari Elka Pangestu said the regulator has a legal basis to take strict action against the breach in the capital market. According to him, the corrective measures that authorities have announced also need to continue to run in order for the stock market management to improve.

"In regards to MSCI, we are advising that we will continue to reform the stock market that has already been run and continue the enforcement by the regulator which has also been announced, because our laws have already made room for that specific steps," said Mari in a press statement at Mercana Castle, Jakarta Center, Tuesday (20 / 10).

On that occasion, Chief DEN Luhut Binsar Pandkaitan confirmed the MSCI matter was reported to the Head of State in the meeting. However, he did not further detail the direction of Prabowo or the further steps discussed regarding the stock market.

"Then our MSCI report (to President Prabowo)," said Luhut.

MSCI on October 15, 2026 announced a consultation on the proposal to change the Indonesian market classification of the emerging market category from the emerging market to the independent market. The final decision is scheduled to be announced at the latest of June 30, 2027.

Then, MSCI assessed the market reform of Indonesia hasn't shown consistent progress. The global index provider highlights the obscurity of stock ownership structures, coordinated trade allegations, as well as yet no evidence of enforcement of rules that are rated significant and sustainable impact.

Furthermore, MSCI has stated that the motion for a classification change can be reviewed if there is clear evidence of repairing and market functions.

The announcement triggered intense pressure on the domestic stock market. IHSG plummeted 11.57 percent to level 5.185 at the close of the Friday (16 / 10), down 678.67 points compared to the previous closing.

The Indonesian Stock Stock (BEI) even stopped while trading for 30 minutes after the index went down over 8 percent at the beginning of the trade.

As for Indonesia itself has not changed because the MSCI consulting process is still underway.