Goldman Sachs Downgrade Triggers Second Trading Halt as Jakarta Composite Index Slides 8% in Minutes

JAKARTA, Investortrust.id — Indonesia’s stock market suffered another sharp selloff on Thursday, Jan 29, 2026 in Jakarta as the Indonesia Stock Exchange halted trading after the Jakarta Composite Index plunged more than 8% within the first 26 minutes, marking the second trading halt in two consecutive days amid intensifying global investor pressure. The decline followed Goldman Sachs’ decision to downgrade Indonesian equities to underweight after MSCI Global suspended its Indonesia index calculation over free-float transparency concerns.

The exchange suspended trading for 30 minutes starting at 9:26 a.m. local time after the benchmark index breached the 8% threshold. Earlier in the session, the index had already fallen 558 points, or 6.75%, to 7,761 within just 10 minutes of opening.

Market sentiment deteriorated rapidly as fears grew that MSCI’s move could eventually result in Indonesia being downgraded from emerging market to frontier status. Goldman Sachs’ downgrade compounded those concerns, accelerating foreign selling and amplifying volatility across the market.

All major sectors were hit hard, with energy stocks tumbling more than 8.8%, infrastructure plunging over 9%, and basic materials and primary consumer sectors sliding about 7%. Analysts described the selloff as indiscriminate, reflecting forced de-risking rather than company-specific fundamentals.

Large-cap and conglomerate-linked stocks led the decline, magnifying pressure on the index. Shares of Barito Renewables Energy fell 13.86% to Rp 7,125, while Dian Swastatika Sentosa sank 14.98% to Rp 83,825, alongside steep losses in Petrosea, Barito Pacific, Bank Central Asia, Mora Telematika Indonesia, Pratama Abadi Nusa Industri, and Ratu Prabu Energi.

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The rout extended losses from the previous session, when the Jakarta Composite Index fell 659.67 points, or 7.35%, to close at 8,320 and triggered a 30-minute trading halt during the second session. Foreign investors recorded net sales of Rp 6.17 trillion, equal to $380 million, led by Rp 4.1 trillion in outflows from Bank Central Asia shares.

Despite the market collapse, pockets of extreme speculation persisted, highlighting stark valuation distortions on the Indonesia Stock Exchange. Several small-cap stocks still managed to hit their daily upper trading limits even as blue-chip names were aggressively sold.

One of the most striking contrasts is PT Abadi Lestari Indonesia Tbk (RLCO), whose shares have surged more than 5,000% since its initial public offering. Samuel Sekuritas Indonesia this week reiterated a speculative buy recommendation, setting a target price of Rp 80,000, implying a further upside of around 820% from the last traded level of Rp 8,700 before the stock was suspended.

In a research note released Monday, Samuel Sekuritas said the valuation was supported by strong export growth of edible bird’s nest products and rising global demand for wellness-oriented food and beverage offerings. The broker projected revenue growth at a compound annual rate of 21.5% between 2024 and 2027, driven by exports to China and Hong Kong and expansion plans across Southeast Asia and the U.S. market.

Indonesia currently supplies about 58% of global bird’s nest demand, with more than 85% consumed in China and Hong Kong, trends Samuel said could sustain premium pricing. The firm also cited potential inclusion in MSCI indices as a key catalyst, while warning that delays in inclusion could trigger sharp corrections.

The juxtaposition of a collapsing benchmark index and soaring niche valuations has sharpened scrutiny of market structure and regulation. Analysts said the divergence underscores why global investors remain cautious, particularly as regulators face mounting pressure to strengthen transparency, liquidity, and free-float standards across listed companies.

With confidence fragile and volatility elevated, investors are bracing for further turbulence as the market digests the implications of MSCI’s suspension and major global broker downgrades. For now, traders say Indonesia’s equity market remains firmly in risk-off territory, with stabilization dependent on regulatory clarity and renewed foreign confidence.