Why is Indonesia facing a rare MSCI downgrade and what's at stake?
Only three other markets have faced a double MSCI downgrade from emerging market to “standalone” status since 1997.
Indonesia faces potential removal from major emerging market indexes if MSCI downgrades its stock market. This drastic change could result in billions of dollars in foreign capital outflows from Southeast Asia's largest economy. MSCI, a leading index provider, proposes dropping Indonesia from its emerging market classification, moving it to the standalone category, in response to concerns about market transparency, trading practices and regulatory enforcement.
A standalone downgrade would force investors to sell their Indonesian holdings and could trigger significant market instability.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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