MSCI gets set to remove Indonesia from global indexes, sparks market slide to six-year low
MSCI said the proposal follows persistent concerns over ownership opacity and trading behavior, and Goldman Sachs estimated a full removal could trigger $5.6 billion in outflows.
- MSCI began consulting on moving Indonesia from emerging-market to standalone status, citing concerns about ownership transparency, suspected coordinated trading, and weak enforcement.
- The proposed change could remove Indonesian stocks from MSCI’s emerging- and frontier-market indexes, potentially forcing benchmark-tracking funds to sell their holdings.
- Indonesia’s benchmark index fell 11.6%, its sharpest daily drop since January 1998, while trading was briefly halted and the rupiah weakened.
- MSCI plans to announce its final decision by June 30, 2027.
153 Articles
153 Articles
An economy with a growth rate exceeding 5% and ample foreign exchange reserves can see its stock market plummet by over 10% in a single day. Indonesia's recent market turmoil presents this seemingly contradictory situation. The immediate trigger for this turmoil was the announcement by the global index provider MSCI on October 15th that it was initiating a consultation process to reclassify the Indonesian stock market from an "emerging market" t…
Ghosts of ’97 haunt Prabowo as MSCI eyes Indonesia’s exit
2026, it is learning how quickly an index provider can show Southeast Asia’s biggest economy the exit, wreaking havoc on its stock market. The provider is MSCI, which may be about to follow through on its threat to downgrade Indonesian stocks to “frontier” status, or to something worse: a standalone market category. President Prabowo Subianto’s […]
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