# Indonesian Stocks Rebound 2.5% After Record $82 Billion Selloff

- URL: https://stocks.freetheai.org/news/indonesian-stocks-rebound-2-5-after-record-82-billion-selloff-8988de
- Published: 2026-10-20T02:49:46Z
- Category: markets; sentiment: bullish; impact: high
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Indonesian equities rebounded in early Tuesday trading, breaking a three-day slump as buyers stepped in following a severe two-day selloff. The benchmark index rose 125 points, or 2.5%, to 5,119. The bounce followed a record $82 billion decline over two sessions that had dragged the market down to a six-year low.

The earlier crash was sparked by a warning from MSCI that Indonesia could be removed from its global indexes next year. To restore investor confidence, market regulators proposed excluding stocks with highly concentrated ownership from benchmark calculations to improve price discovery. Sentiment was also supported by overnight gains on Wall Street and China keeping its benchmark lending rates unchanged for a 17th consecutive month.

Sector gains were broad, with financials, healthcare, basic materials, and energy performing strongly. Among top individual movers, Telkom Indonesia surged 13.6%, Charoen Pokphand climbed 8.2%, Bank Mandiri gained 7.7%, and Aneka Tambang rose 7.3%. Investors will now be monitoring regulatory efforts to implement index reforms and further developments regarding global index qualifications.

## Key points

- Indonesian shares surged 125 points, or 2.5%, to 5,119, snapping a three-day losing streak.
- The rally followed a two-day $82 billion market rout that drove stocks to a six-year low after MSCI warned of potential index removal.
- Regulators proposed excluding tightly held stocks from benchmark index calculations to improve price discovery and trust.
- Individual gainers were led by Telkom Indonesia jumping 13.6% and Charoen Pokphand rising 8.2%.

## Questions and answers

### Why did Indonesian stocks bounce back on Tuesday?

Indonesian shares rose 2.5% as bargain hunters bought shares following a record two-day $82 billion selloff. Broader market sentiment was supported by gains on Wall Street, steady Chinese lending rates, and proposed local regulatory reforms to improve index accuracy.

### What caused the recent record selloff in Indonesian shares?

The market dropped to a six-year low after MSCI issued a warning that Indonesia could be removed from its global market indexes next year, triggering an $82 billion two-day decline.

### How are Indonesian regulators responding to the market rout?

Regulators proposed excluding stocks with highly concentrated ownership from benchmark index calculations to enhance price discovery and rebuild investor confidence.