The Canada Brief

Economy · 19 d ago

Jakarta

Indonesia

Indonesian stocks plunge as MSCI moves to drop its emerging-market status

Fall of the Jakarta Composite Index, Friday

11.1 %

The Jakarta Composite Index fell 11.1 per cent on Friday, its heaviest fall since early 1998, after an 8 per cent drop at the open forced a trading halt.

The status MSCI proposes

standalone

MSCI says reforms on ownership and trading have not gone far enough, and proposes a downgrade to standalone status, which would exclude Indonesian stocks from its global indexes.

Passive funds

US$4 billion

Active investors

US$15 billion

UBS estimates a removal could trigger about US$4 billion of passive outflows, and active investors could pull a further US$15 billion.

Apr

30

Friday

End of MSCI's consultation

The Indonesia Stock Exchange says the announcement is part of a consultation open until Apr 30, 2027, and not a final decision.