On January 30, 2026, in Indonesia, the chief economic minister announced plans for increased transparency and corporate governance in the financial market following a significant decline in stock prices. The resignation of Iman Rachman, the chief executive of the Indonesia Stock Exchange, was in response to an unprecedented $80 billion drop in share value that occurred on January 28 and 29. The Jakarta Composite Index fell by over 8% but saw a slight recovery by 0.9% the following day after government promises of reform. Investors expressed concerns over potential downgrades from MSCI due to lack of transparency in share ownership. The proposal for reform includes raising the free float requirement for shares and enabling pension funds to significantly increase their investment in capital markets. The resignation was seen as a necessary step by Rachman to restore investor confidence amidst increasing foreign capital outflows attributed to Indonesia's expanding fiscal deficit and state involvement in financial markets. Financial analysts from firms like Aberdeen Investments and Valverde Investment Partners anticipated a continued reduction in market value due to ongoing governance concerns. In the backdrop of these events, global investors have been pulling money out of Indonesia, with sell-offs amounting to as much as $1 billion. Views from portfolio managers suggest that many will likely redirect their investments toward more stable ASEAN markets, such as Singapore, Vietnam, and Thailand. The Financial Services Authority of Indonesia indicated that measures to improve governance and transparency would be prioritized to address the issues cited by MSCI and to stabilize the market before May. As confidence in the Indonesian market wanes, major financial institutions like Goldman Sachs, UBS, and HSBC have already downgraded their outlook on Indonesian stocks, highlighting a growing concern over the governance and performance of companies listed on the exchange. The government has reassured stakeholders that decisive steps will be taken to rectify existing issues and build a stronger financial environment, emphasizing the soundness of the country's economic fundamentals in the long term.