Indonesian equities fell 58 points, or 0.9%, to 6,318 in Thursday morning trade, reversing the previous session’s rally as investors reacted to MSCI’s August 2026 index review. The review brought no new inclusions and 11 removals from key indices under a strict global "freeze" policy, while Indonesia retained its Emerging Markets classification but saw the weighting of local equities reduced. The changes are due to take effect after the market close on August 31, 2026. Losses were broad-based, led by basic materials, cyclical stocks and healthcare, after an earlier session had also been pressured by Wall Street, higher oil prices and caution ahead of domestic retail sales. The decline was partly tempered by reports that the government will reclaim part of state-company dividends to build a fiscal buffer fund and by President Prabowo’s nomination of acting Bank Indonesia Governor Destry Damayanti as the sole candidate to succeed Perry Warjiyo, which helped ease leadership concerns.