MSCI Weighs Indonesia Demotion to Standalone Status
Global index provider MSCI is considering downgrading Indonesia from emerging market to standalone status. The potential move triggered a sharp decline in local stocks and the rupiah currency as investors react to the news.
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MSCI Inc warned on Friday morning it may downgrade Indonesia's stock market to standalone status, sparking a sell-off in local equities and the rupiah. The potential reclassification is worse than a previous threat of a downgrade to frontier market status. The move threatens to upend investment flows in Southeast Asia's biggest economy.
