MSCI considers removing Indonesia from emerging markets indexes after market collapse
- Reports
- 11
- Developments
- 7
- Repetition
- 45%
New informationRepeats or wire copies
What happened
Indonesian stocks fell to a six-year low following a severe market collapse, which was the worst since 1998. The Jakarta Composite Index dropped sharply, with the two-day rout making Indonesia the worst-performing market globally. This turmoil followed a warning from MSCI that it may shift Indonesia to “standalone” status, removing it from the “emerging markets” category.
Why it matters
MSCI formally assesses and classifies the Indonesian equity market. The potential removal from emerging markets indexes puts pressure on Indonesia to address MSCI's concerns regarding market transparency, corporate governance, and ownership structures.
MSCI had previously reviewed investability criteria for Indonesian markets.
From shafaqna.com, worthynews.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- IndonesiaSpeculative
Investors might reduce capital investment in Indonesia due to damaged investor confidence.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- How could MSCI's potential removal of Indonesia affect BlackRock's investment strategy?BlackRock may need to adjust holdings amid MSCI's Indonesia downgrade threatLikely
- How could MSCI's potential index removal affect the Indonesia Stock Exchange?MSCI's potential downgrade may severely strain the Indonesia Stock Exchange's liquidityPossible
- Bank Indonesia may be forced to intervene heavily to defend the rupiahBank Indonesia may be forced to intervene heavily to defend the rupiahPossible
How it developed
Newest first. Tap a step to see who reported it.MSCI floated the possibility of removing Indonesia from its indexes.1 source
MSCI issued a specific threat to downgrade Indonesia's stock market status.1 source
MSCI started consultation on Indonesia's market status amid regional index comparisons.1 source
- The Jakarta Composite Stock Index fell sharply by 15% on October 19, 2026.Sub-event
MSCI may expel Indonesia from global indexes.1 source
MSCI considers removing Indonesia from indexes amid worst market collapse since 1998.1 source
Prabowo seeks to boost growth as MSCI's index removal threat impacts the Jakarta Composite Index.1 source
Keep exploring
Part of
Indonesian stock market collapse amid MSCI downgrade threatAlso in this story
- The Indonesia Stock Exchange (IDX) holds routine technical meetings with MSCI regarding the review of market criteria for Indonesia.
- MSCI downgraded information flow criteria for Indonesia, which influences the perception of the Philippine market.
The entities involved
Related events
- MSCI reviews Indonesia's index status while the Bank of China underwrites a bond sale and the Finance Ministry manages budget financing.
- MSCI tracks Asia-Pacific shares and issues warnings affecting regional market sentiment, including Bursa Malaysia and Singapore.
- MSCI suspended equity indexes for Turkey due to transparency concerns, prompting selling pressure on the BIST 100.
- MSCI index rules may affect Bitcoin companies, while warnings caused stock market crashes in Turkey and Indonesia.
- Lutfi alleged schemes to suppress stock prices, while Temasek and GIC were involved in market activity in Indonesia.
Coverage
Newest first; wire copies grouped- bangkokpost.com
- thejakartapost.com
- thejakartapost.com
- dealstreetasia.com
- channelnewsasia.com
- shafaqna.com
- morningstar.com
- worthynews.com
- indonesia-investments.com
- livemint.com