Indonesia Stock Market Plunges Amid MSCI Standalone Market Warning

The Jakarta Composite Index plummeted up to 11.57% on Friday, October 16, marking its steepest single-day drop since January 1998.

The historic sell-off was triggered by an MSCI warning that it is considering moving Indonesia from emerging-market to standalone market status.

UBS estimates that the potential downgrade and index removal could trigger around $4 billion in passive fund outflows and $15 billion from active investors.