Indonesian stocks hit six-year low as MSCI downgrade warning fuels selloff
publishers 24articles 35first reported 16 Oct, 03:43 UTCdeveloping since 16 Oct · 11 editions
Indonesian stocks fell more than 5% on Monday to their lowest level since October 2020, extending a sharp selloff prompted by MSCI’s warning that it could remove the country from its emerging-market indexes.
The decline followed an 11.6% plunge in the Jakarta Composite Index on Friday, its steepest one-day fall since January 1998, with trading temporarily halted. The rupiah approached a record low and Indonesian bonds also weakened.
MSCI said Friday that it was considering moving Indonesia directly from emerging-market to standalone status, bypassing frontier-market classification because of concerns over opaque shareholding structures, suspected coordinated trading and weak enforcement. A final decision is expected by June 2027 unless authorities demonstrate that announced governance and transparency reforms have been consistently implemented and materially improved the market.
Indonesia’s stock exchange said Monday that it had reduced its lower automatic rejection limit for share-price declines to 7% from 15%, aiming to give investors time to assess available information. The exchange also plans to seek clarification from MSCI, while the Financial Services Authority said it was reviewing the assessment and remained committed to stronger enforcement.
Goldman Sachs estimated that removal from MSCI’s emerging-market indexes could prompt about $5.6 billion in passive fund outflows. Mirae Asset Sekuritas Indonesia estimated roughly $3 billion, illustrating uncertainty over the potential impact. Foreign investors have already sold nearly $5 billion of Indonesian shares this year, according to figures cited by CNA.
HOW THIS STORY WAS MADE
Written from 8 articles, 3 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 84 h after the record first saw the story; the editor revised it.
- Publishers
- 24
- Source articles
- 35
- Given to the writer
- 8, 3 with the article's own text
- Independent newsrooms
- 8
- This version written
- 84 h after the record first saw the story
- Second model (editor)
- revised
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
The second model checked the writer's draft against the same sources and changed it before publication. Struck words were in the draft; underlined words are its corrections.
WHAT IT FLAGGED editor revise: Correct the timing of the trading halt to make clear it occurred during Friday’s plunge. - "its steepest one-day fall since January 1998, when trading was temporarily halted": The story incorrectly attaches the temporary trading halt to January 1998; the source says Friday’s selloff triggered a 30-minute halt.
THE DRAFT AND THE CHANGES
Indonesian stocks hit six-year low as MSCI downgrade warning fuels selloff
Indonesian stocks fell more than 5% on Monday to their lowest level since October 2020, extending a sharp selloff prompted by MSCI’s warning that it could remove the country from its emerging-market indexes.
The decline followed an 11.6% plunge in the Jakarta Composite Index on Friday, its steepest one-day fall since January 1998, whenwith trading was temporarily halted. The rupiah approached a record low and Indonesian bonds also weakened.
MSCI said Friday that it was considering moving Indonesia directly from emerging-market to standalone status, bypassing frontier-market classification because of concerns over opaque shareholding structures, suspected coordinated trading and weak enforcement. A final decision is expected by June 2027 unless authorities demonstrate that announced governance and transparency reforms have been consistently implemented and materially improved the market.
Indonesia’s stock exchange said Monday that it had reduced its lower automatic rejection limit for share-price declines to 7% from 15%, aiming to give investors time to assess available information. The exchange also plans to seek clarification from MSCI, while the Financial Services Authority said it was reviewing the assessment and remained committed to stronger enforcement.
Goldman Sachs estimated that removal from MSCI’s emerging-market indexes could prompt about $5.6 billion in passive fund outflows. Mirae Asset Sekuritas Indonesia estimated roughly $3 billion, illustrating uncertainty over the potential impact. Foreign investors have already sold nearly $5 billion of Indonesian shares this year, according to figures cited by CNA.
Written by a language model from the sources above, then checked by a second model that may only cut, attribute or correct. How it works →