Indonesian stock market tumbles 11.6%, MSCI threatens to be removed from global indices, with risks reaching $19 billion
2026-10-16 21:08:28
According to CoinMeta, Indonesia's stock market tumbled 11.6% on October 16th, and MSCI is considering removing the country from global indices, which could lead to a capital outflow of up to $19 billion. The Jakarta Composite Index closed at 5,185.10 points, recording the largest single-day decline since the Asian financial crisis in 1998. MSCI mentioned in a statement on October 15th that due to concerns about opaque shareholder structures and inadequate regulatory enforcement, it is recommended to reclassify Indonesia from an emerging market to an independent market. This move could result in a passive investment outflow of about $4 billion, as well as an active management investment outflow of $15 billion. Although this estimate does not guarantee that all funds will be withdrawn, the challenge Indonesia faces is to prevent market panic from evolving into a long-term international capital exodus.
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Source:Coinpaper
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