Markets·October 15, 2026 at 8:43 PM EDT·5 sources
Indonesia Outflows to Worsen as MSCI Mulls Cut, Analysts Say
MSCI -0.7%
MSCI · last 30 trading days+9.8% since the news
News
What happened
- MSCI proposed downgrading Indonesia, potentially removing it from major global indexes or classifying it as a standalone market.
- Analysts warned Indonesian equities could face further foreign outflows and capital-flight concerns.
- Indonesian stocks suffered their biggest drop since the 2008 global financial crisis, according to The Wall Street Journal.
Indonesia GDP
about $1.5 trillion
Why it matters
A downgrade could reduce Indonesia’s visibility and accessibility for global investors, with implications for equity flows, market liquidity and financing conditions in Southeast Asia’s largest economy.
What to watch. MSCI’s decision on whether to downgrade or remove Indonesia from its global indexes.
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Timeline
- EarlierOct 15MSCI finalizes index rules that put Strategy, crypto treasury firms at risk of exclusion
- First reported by BloombergOct 16Indonesia Outflows to Worsen as MSCI Mulls Cut, Analysts Say
- Financial Times reportsOct 16MSCI warns it may cut Indonesia from main indices
- The Wall Street Journal reportsOct 16Indonesian Stocks Dive as MSCI Weighs Downgrade to Standalone Market
- The New York Times reportsOct 16Indonesian Stocks Plunge as MSCI Threatens to Drop Market from Indexes
- Fortune reportsOct 16Indonesia’s Danantara pledges $5 billion to home-grown companies as MSCI once again threatens a downgrade
Who is involved
Indonesia Outflows to Worsen as MSCI Mulls Cut, Analysts SayMSCI Inc.MSCIIndonesia
CompanyAgency
Sources (5)
- BloombergOct 16Indonesia Outflows to Worsen as MSCI Mulls Cut, Analysts Say
- Financial TimesOct 16MSCI warns it may cut Indonesia from main indices
- The Wall Street JournalOct 16Indonesian Stocks Dive as MSCI Weighs Downgrade to Standalone Market
- The New York TimesOct 16Indonesian Stocks Plunge as MSCI Threatens to Drop Market from Indexes
- FortuneOct 16Indonesia’s Danantara pledges $5 billion to home-grown companies as MSCI once again threatens a downgrade
Related
- Oct 23 · Q&A: Indonesia’s Stock Market Selloff
- Oct 19 · Indonesian Stocks Tumble to Lowest Since 2020 After MSCI Warning
- Oct 21 · Prabowo Says Indonesia Will Not Be Intimidated by MSCI
- Oct 20 · MSCI Inc.: Results of operations
- Oct 15 · MSCI finalizes index rules that put Strategy, crypto treasury firms at risk of exclusion
- Oct 16 · Indonesia Rate-Hike Bets Grow as MSCI Alarm Pressures Rupiah
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