Iman Rachman, the CEO of the Indonesia Stock Exchange (IDX) has resigned following two days of market decline. Said market decline resulted in an estimated US$84 billion loss in market value.

Iman Rachman Resigns

According to a report by the Jakarta Globe, Iman said in a statement that his resignation is a way to take responsibility over what happened.

"As CEO of the Indonesia Stock Exchange, and as a form of responsibility for what happened over the past two days, I hereby state my resignation," he said at a press conference.

"I hope this is the best decision for the capital market," Iman added.

The former CEO also shared that he wishes for the stock index to recover in the coming days. As noted in the report, the stock index opened higher on Friday.

What Led to the US$84 Billion Loss?

According to Tech in Asia, the billions loss in market value over the span of two days was triggered by a warning from finance company MSCI. The MSCI had warned that there is a possibility that Indonesia may be downgraded to a frontier market status.

Indonesia, as of writing, holds the status of emerging market.

To explain its warning, MSCI had voiced concerns over trading transparency.

As a result, the Jakarta Composite Index dropped 7.35% on January 28 and 1.06% on January 29. As previously mentioned, it improved by 1.18% on January 30.

According to Reuters, MSCI is giving Indonesia until May to show progress as a reassessment will take place that month.