On Friday, the head of the Indonesian stock exchange, Iman Rachman, stepped down after a turbulent period that saw the national stock market plummet by $84 billion in just 48 hours. This significant loss was driven by fears of a potential downgrade by the global index provider MSCI.

The Indonesian Stock Exchange confirmed Rachman’s resignation in a statement, attributing it to his willingness to take responsibility for the “recent market condition,” although further details were not provided.

During a press conference, Rachman expressed his hopes that his departure would benefit the capital market. “I trust this is the best decision for our market,” he stated, as reported by Reuters. “May my resignation pave the way for enhancements in our market. I am optimistic that the index, which saw a positive start this morning, will show continued improvement in the days to come,” he remarked.

Earlier in the week, MSCI issued a caution about potentially reclassifying Indonesia to “frontier” market status from its current “emerging” market designation, citing significant concerns over the transparency of trading practices.

“Investors highlighted that fundamental investability issues persist due to ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation,” MSCI said late Tuesday.

The Jakarta Composite rose 1.18% on Friday, after losing 7.35% on Wednesday and another 1.06% on Thursday.

A day before his resignation, Rachman told CNBC that Indonesian regulators had held discussions with MSCI, focused around enhancing data transparency, particularly around free float and ownership structures.

On Thursday, Indonesia’s financial regulator said it would double the free float requirement on listed firms to 15%, responding to MSCI concerns about transparency on the country’s stock exchange, according to Reuters.

The IDX on Wednesday released a statement saying that it recognized the feedback by MSCI as a “valuable part” of its efforts aimed at enhancing the credibility of Indonesia’s capital market. “We are fully committed to making our best efforts to increase the weighting of Indonesian equities in the MSCI indices,” IDX said.

Speaking to CNBC’s JP Ong, Pandu Sjahrir, chief investment officer at sovereign wealth fund Danatara, said that “what happened the last two days is almost like a good cold plunge…the market kind of panicked a bit. And what happens after a cold plunge? Usually, you fix yourself up and you become refreshed.”

Indonesia’s market has about one billion dollars in liquidity per day, Pandu said, adding that the market needed a liquidity of 8 to 10 times that amount.

“The only way to do it is through transparency. We have to be able to listen to what the market says, and don’t be defensive.”