Indonesian stocks plunge to six-year low as MSCI downgrade fears mount
- Indonesia's benchmark stock index plunged over 5% on Monday to its lowest level in six years, with the Jakarta Composite Index at its lowest since early October 2020.
- MSCI on Friday proposed reclassifying Indonesia directly from an emerging market to stand-alone status and is expected to make a final decision by June.
- Goldman Sachs warned a full removal from MSCI's emerging-market indexes could trigger approximately $5.6 billion in passive fund outflows, with another $2.7 billion at risk if FTSE Russell acts similarly.