00:00Indonesian stocks have suffered their worst sell-off in nearly three decades
00:04after global index provider MSCI warned that the country could lose its emerging market status.
00:12This warning has raised fears that Indonesian stocks could be removed from major global indexes,
00:19potentially triggering a wave of investment outflows.
00:22Foreign investors have already pulled some US$4.9 billion out of Indonesian stocks so far in 2026.
00:31The benchmark Jakarta Composite Index plunged more than 11% on Friday,
00:37its biggest drop since January 1998 during the Asian financial crisis.
00:42The sharp sell-off which triggered a 30-minute trading halt adds to an already difficult year for Indonesian stocks,
00:48the world's worst-performing equity market so far this year.
00:52MSCI has cited concerns over market accessibility and governance
00:56as it considers downgrading Indonesia from emerging market to stand-alone market status.
01:02That would put Indonesia in the same category as Lebanon, Palestine and Ukraine.
01:07The warning adds to pressure on President Prabowo Subianto,
01:10who is struggling to restore investor confidence.
01:13The rupiah has also fallen about 8% this year,
01:17making it Asia's worst-performing currency and pushing it towards a record low.
01:20MSCI is expected to make a final decision in June 2027
01:25unless Indonesia can demonstrate major improvements in market governance.
01:29The rupiah is expected to make a final decision in June 2027.
01:29The rupiah is expected to make a final decision in June 2027.
01:29The rupiah is expected to make a final decision in June 2027.
01:30The rupiah is expected to make a final decision in June 2027.
01:31The rupiah is expected to make a final decision in June 2027.
01:31The rupiah is expected to make a final decision in June 2027.
01:31You
