MSCI Cuts Indonesia Status

JakartaStocks plunged 10% to a six-year low.

Index-tracking funds must sell, and the rupiah fell 0.6% to 18,000 per dollar.

Reforms on ownership opacity and trading behaviour fell short, so MSCI proposes standalone status for Indonesia, worse than frontier.

The Indonesia Stock Exchange says it has taken concrete steps on transparency and wants clarification.

MSCI consults investors until April 2027, then reclassifies unless governance clearly improves.

Sources: Reuters