MSCI excludes Indonesia from its indexes and triggers an 11% collapse
The boom in ETFs can cause stock market earthquakes like the one recorded today in Indonesia. The Jakarta Stock Exchange has plummeted by 11% after losing its emerging market category.
The Jakarta Stock Exchange has plummeted 11%, losing its emerging market category, as MSCI announced it would exclude Indonesia from this category due to lack of transparency on corporate ownership and market operations. This decision may trigger massive sell-offs by exchange-traded funds (ETFs) that track popular indices such as the MSCI Emerging Markets or MSCI EM Asia Index.
Indonesia's stock market index, the Jakarta Composite Index, has hit a six-year low, with cumulative losses exceeding 30% over six and 12 months. MSCI will reevaluate Indonesia's status in June 2027.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
