The volatility started when MSCI suggested the country no longer merits emerging market status due to concerns over transparency and market integrity. The announcement triggered a rout that wiped roughly $90B from the market, with the benchmark index dropping 11.6% in one session and the rupiah falling to over 18,000 per dollar. In an effort to signal reform, the stock exchange recently imposed $117M in fines on three companies for market manipulation.
Tuesday, October 20, 2026
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Indonesian Stocks Rebound After Measures to Stop MSCI Downgrade
Global Markets1 day ago
Jakarta's equity markets have begun to recover after the government pledged to overhaul index rules to keep its emerging market status from being revoked by MSCI. The rally follows the steepest decline in nearly 30 years, during which shares hit a six year low and selling spread to bonds and the rupiah. To prevent a downgrade to standalone market status, Indonesia will remove stocks with concentrated ownership from its benchmark indices, and officials meet with MSCI executives on Monday to contest the reclassification.
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