The Jakarta Stock Exchange index lost up to 11.4% in a single session, its worst performance since 1998, after MSCI announced a consultation to downgrade Indonesia from emerging market to standalone market status. The index provider cited persistent opacity of shareholding structures and suspicions of coordinated trading behaviors in Indonesia. The freeze in place since January prohibits any addition of Indonesian securities to indices, with foreign net sales already reaching $4.7 billion since the start of the year. The Indonesian stock exchange is down nearly 40% in 2026, the worst global performance, while the rupiah fell to 18,070 per dollar, within a breath of its historical low of 18,190. MSCI’s consultation runs until April 30, 2027, with a final decision expected by June 30, 2027.
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