Indonesian stocks plunge to six-year low as MSCI downgrade fears mount
Indonesian equity markets faced a severe contraction on Monday as the Jakarta Composite Index fell by more than 5%, marking its lowest point in six years. This significant downturn brought the benchmark to levels not seen since early October 2020. The primary driver for the sell-off appears to be growing anxiety regarding a potential change in the country's status within global investment benchmarks, which could lead to a massive withdrawal of international capital.
Msci Proposed Reclassification
The uncertainty stems from a proposal issued on Friday by MSCI, a major provider of stock market indexes. MSCI suggested that Indonesia could be moved from its current emerging market designation to a stand-alone status. Such a reclassification would effectively remove the nation from several influential global equity indexes. A final decision on this proposal
Source: cnbc.com · 2026-10-19