MSCI announced plans to remove Indonesia from its emerging market indexes, proposing a downgrade to standalone status due to market dysfunction and insufficient reforms. The Jakarta stock index ...
Indonesia gets 'wake-up call' as MSCI prepares to expel it from global indexes
Indonesia's stock market plunged after MSCI proposed downgrading the country from emerging market to standalone status.
AA Astro Awani 
Key points
- JAKARTA/SINGAPORE: Indonesia's stock market is no longer worthy of "emerging market" status, MSCI said on Friday, laying out a plan to remove it from a suite of indexes tracked by funds, a shock move that sparked the steepest one-day drop in Jakarta shares since 1998.
- The benchmark stock index .JKSE, already the world's worst performer this year, closed down 11.57%, in its biggest single-day drop since January 1998.
- Equities in Southeast Asia's biggest economy have struggled since a January freeze in the MSCI indexes, with a threatened downgrade to "frontier" status because of opacity in ownership and trading behaviour.
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