Indonesia lost $82 billion in two days, and MSCI is why.
On 15 Oct MSCI said Indonesia's Emerging Market status is "no longer appropriate" and proposed cutting it to Standalone, below Frontier. The Jakarta Composite fell 11.57% the next day, its worst since January 1998, and 14.8% over two sessions.
Goldman estimates a removal could mean about $5.6B of passive outflows. MSCI decides by 30 June 2027.
Could this spill into crypto?
On 15 Oct MSCI said Indonesia's Emerging Market status is "no longer appropriate" and proposed cutting it to Standalone, below Frontier. The Jakarta Composite fell 11.57% the next day, its worst since January 1998, and 14.8% over two sessions.
Goldman estimates a removal could mean about $5.6B of passive outflows. MSCI decides by 30 June 2027.
Could this spill into crypto?