Indonesia Stock Exchange to Meet MSCI on Monday, Seeking Clarification on Downgrade Warning
The exchange will press MSCI for its rationale after the warning wiped US$65 billion from market value and sent Jakarta stocks to six-year lows.
- On Monday, Indonesia Stock Exchange chief executive Jeffrey Hendrik will meet with global index provider MSCI to seek clarification after the provider warned Indonesia is no longer worthy of "emerging" status.
- MSCI warned on Friday that Indonesia could be relegated to "standalone" status, citing "significant concerns about dysfunctions in the market," including coordinated trading behavior and enforcement failures.
- The unexpected announcement triggered massive selloffs in Jakarta, wiping off US$65 billion of market capitalisation on Friday alone, marking the exchange's worst day of trading since 1998.
- Shares dropped 5% on Monday to hit their lowest point in six years. To arrest the decline, IDX halved the daily down limit on stock prices to 7 per cent, Jeffrey said was an effective stabilization measure.
- "Standalone" status would exclude Indonesian stocks from global indexes tracked by billions of dollars in passive investment, a more severe relegation than a previous warning regarding "frontier" market status.
12 Articles
12 Articles
Global Market: Indonesia stock exchange to meet MSCI after downgrade warning triggers market rout
Indonesia’s stock exchange will meet MSCI on Monday to seek clarity over a warning that could strip the country of its emerging-market status. The threat triggered a sharp selloff, wiping $65 billion off market capitalisation on Friday. A downgrade could prompt foreign fund outflows and weaken investor participation in Indonesian equities.
Indonesia Said to Meet Monday With MSCI Over Shock Index Threat
Indonesian officials plan to meet with MSCI Inc. executives on Monday, according to people familiar with the matter, after saying they were blindsided by the index provider’s threat to reclassify the country as a standalone market — a much more severe step than they thought was under discussion during months of talks.
The IDX met with MSCI at 3:30 p.m. WIB to seek clarification on the status of Indonesia's capital market consultations after the Jakarta Composite Index (JCI) weakened 5.05 percent.
MSCI Considers Downgrading Indonesia’s Market Classification
MSCI Inc. is considering downgrading Indonesia’s equity market classification to standalone-market status, citing concerns about market accessibility and investability, according to an update released early Friday in Jakarta. The proposed change would bypass frontier-market status and remove Indonesia from MSCI’s main global equity indexes. A final decision is expected by mid-2027. The potential reclassification follows months of efforts by Indo…
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