Indonesia’s $1.5 trillion market faces a historic downgrade: Why global investors are worried
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Indonesia’s stock market suffered its worst one-day collapse in nearly three decades on Friday.
- ✓The Jakarta Composite Index fell 11.4% after MSCI said the country’s emerging market status was no longer appropriate.
- ✓This move triggered a trading halt and forced many global investors to worry about billions in potential losses.
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 7 Minute(s)
- Market Focus
- India Economy
Indonesia’s stock market suffered its worst one-day collapse in nearly three decades after MSCI said the country’s continued classification as an emerging market was no longer appropriate, raising the prospect of billions of dollars in forced foreign selling. The Jakarta Composite Index plunged as much as 11.4% on Friday to its lowest level since November 2020. The fall was the steepest since January 1998 and triggered a 30-minute trading halt after the benchmark opened 8% lower.
The rupiah also weakened sharply to 18,070 per dollar, its lowest level since late July and close to its lifetime low of 18,190.
The selloff extended across the country’s biggest banks. Bank Central Asia, Bank Rakyat Indonesia and Bank Mandiri each fell nearly 15%. With Friday’s losses, Indonesian equities have declined nearly 40% in 2026, making them the world’s worst performing stock market.
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The Economic Times
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