The Economic Daily News (16th) reported that index provider MSCI is considering downgrading Indonesia from 'emerging market' to 'standalone market', implying Indonesia could be removed from global stock indices, sparking market concerns over foreign capital outflow. Jakarta Composite Index plunged 8% at one point in early Friday trading, triggering a circuit breaker and suspending trading for 30 minutes. After resuming trading post-circuit breaker, the benchmark index's decline widened to 11%, marking the largest drop since January 1998.
MSCI stated that the consultation regarding classifying Indonesia as a 'standalone market' will continue until April 30, 2027, with the final decision expected to be announced by June 30 of the same year.
Analysts expect that before Indonesia's market status becomes clear, selling pressure from foreign investors and market volatility will persist, and the Jakarta Composite Index may experience deeper adjustments. (yc)
MSCI stated that the consultation regarding classifying Indonesia as a 'standalone market' will continue until April 30, 2027, with the final decision expected to be announced by June 30 of the same year.
Analysts expect that before Indonesia's market status becomes clear, selling pressure from foreign investors and market volatility will persist, and the Jakarta Composite Index may experience deeper adjustments. (yc)
