SLC-S29/W3-“Thinking and Ideas!| Seeing Problems Differently!”

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We meet again in the exciting challenge SLC-S29/W3-“Thinking and Ideas! | Seeing Problems Differently!” at the end of January 2026, which is beautiful, but stifling for me for two reasons. First, because I'm experiencing turbulence with a loved one, and that's not reflected in this post.

Second, regarding the Indonesian Composite Stock Price Index (IHSG), which has fallen by 8 percent. And this is what my post is about.

Identifying the problem

At the end of January 2026, since January 28th, the IHSG has been on fire. It dropped by 8 percent, and this is the deepest it's ever been, leaving many investors' portfolios in the red. Ironically, a few days earlier, the Jakarta Composite Index (JCI) reached an all-time high of Rp9,033, equivalent to 9 #steem at the time of writing this post.
Many investors and traders, including myself, were optimistic when the JCI reached its all-time high amidst global geopolitical turmoil. We thought this was an anomaly or a sign of resilience in the Indonesian stock market.

It turned out to be an illusion. When Morgan Stanley Capital International announced a temporary freeze on index treatment for Indonesian stocks due to concerns about free float and market accessibility, the JCI immediately plummeted. Indonesian media reported that around Rp5 trillion in foreign funds had left.
This was the first crash caused by MSCI that I have experienced since entering the stock market in 2016.

Why does this problem persist?

Stock market crashes have occurred several times for various reasons. When the President of the United States declared war, global tensions arose, and I once lost Rp100 million, equivalent to 104,712 #steem. Currently, my portfolio is down around IDR 70,000,000, or 73,298 #steem.

However, this happens in many countries, and the cause is not internal to Indonesia. Foreign investors are not fleeing the Indonesian stock market.

This time is different because it relates to foreign investor confidence.

What is relevant to the question above is why the IDX was unable to anticipate this even though they understood the situation.

There are unanswered issues. However, the IDX Director and the Financial Services Authority Commissioner (similar to the SEC in the United States) jointly stepped down as a form of accountability.

The most misunderstood part of this issue?

The main issue is the free float portion of issuers in the Indonesian stock market. The IDX has revised the regulation from a minimum of 7 percent free float to 15 percent. However, it seems not all issuers have seriously adjusted to this regulatory change.

By the way, for those who don't understand, free float is the portion of shares that can be traded on the stock market. This means the public owns up to 15 percent of the shares. The rest is owned by management.

Unfortunately, the IDX announced the changes to the free float increase too late, resulting in a significant plunge in the JCI.

Changing one mindset regarding this problem, what is it?

The most fundamental question is how to solve this problem in an unconventional way. First, I don't use hot money to trade stocks. This means that this loss doesn't disrupt the family's finances.

Second, don't consider this a loss as long as we don't cut our losses. I let the stock go into a negative position and will only sell if it rises. What if it doesn't rise? I still won't cut my losses unless I run out of money.

In my experience, the stock will eventually rise because I bought stocks with high valuations.

So, wait patiently and don't panic in this uncertain situation. Greetings from Aceh, Indonesia.

How are @zainalbakri, @yuswadinisam, and @munaa? Share your thoughts. Thank you.

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