🚨 Indonesian Stocks and Rupiah Slide as MSCI Downgrade Proposal Sparks Heavy Selling
Indonesian stocks plunged more than 11% intraday, marking their steepest decline since 1998 and triggering a temporary trading halt.
The selloff followed MSCI’s proposal to reclassify Indonesia from an “Emerging Market” to a “Standalone Market.” The proposal remains under consultation, amid concerns over market transparency, concentrated ownership and trading integrity.
Investors fear that, if implemented, the downgrade could force global funds tracking the relevant indexes to sell Indonesian stocks, potentially triggering billions of dollars in capital outflows.
Meanwhile, the Indonesian rupiah weakened to 18,070 per US dollar, approaching its record low of 18,190.
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