MSCI warned that Indonesia's position in the emerging market is in jeopardy. The country's stocks are at risk of being removed from global indices, concerns about foreign capital flight are heating up, and the Indonesian stock market has experienced its worst decline in nearly 30 years. The benchmark stock index, the Jakarta Composite Index, opened sharply, triggering a temporary suspension of trading for 30 minutes. It plummeted by more than 11% in the intraday period, the biggest one-day decline since January 1998. Friday's sell-off further exacerbated the decline of the Indonesian stock market this year, consolidating its position as the world's worst performing stock market. The Indonesian rupiah exchange rate is also approaching an all-time low. The MSCI statement said that the index agency has begun a consultation process and plans to implement a two-level downgrade for Indonesian stocks: skipping the cutting-edge market classification and directly classifying this Southeast Asian country as an independent market because of its serious investability issues. MSCI is expected to make a final decision in June next year, unless clear evidence of substantial improvements in market governance can be found.

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