Core Insights - The resignation of IDX CEO Iman Rachman highlights increasing investor anxiety following a market plunge that erased approximately $80 billion in equity value this week [1] - The Jakarta Composite Index (JCI) experienced a significant sell-off, dropping over 8% in two sessions, marking its largest multi-day decline in months [2] - MSCI Inc. raised concerns regarding "investability" and transparency in Indonesian equities, warning that Indonesia could be downgraded from "emerging market" to "frontier market" status if structural issues are not addressed [3][4] Regulatory Response - Indonesian regulators have taken steps to reassure investors, with the IDX acknowledging MSCI's feedback and committing to increase the weighting of Indonesian equities in MSCI indexes [5] - The Financial Services Authority (OJK) plans to raise the minimum free-float requirement for listed companies to 15% to enhance liquidity and transparency [6] - The Indonesian government will increase the investment limit for pension funds and insurers in the stock market from 8% to 20% of their assets, which contributed to a slight market recovery with the JCI rising 1.18% [6] Market Sentiment - Overall investor confidence remains fragile amid broader economic uncertainties under President Prabowo Subianto's administration [7] - Concerns over expanding social spending despite weakening government revenues, pressure on the rupiah, and questions regarding central bank independence have led to increased foreign capital outflows [8]