The Jakarta Composite Index suffered its steepest fall since early 1998, hitting its lowest level since 2020. (EPA Images pic)HONG KONG: Indonesian stocks plunged more than 11% Friday as index compiler MSCI said it was "no longer appropriate" to maintain the country's emerging-market status, fuelling fears of an exodus of foreign investment.

The US firm said earlier this year that investors had raised concerns about "ongoing opacity in shareholding structures" as well as coordinated trading behaviour that affected price information.

Authorities in Jakarta said in April they had completed reforms, hoping to avoid the downgrade, which could deal a blow to government efforts to kickstart Southeast Asia's biggest economy, and have a significant impact on investment decisions.