Jakarta. Indonesia’s benchmark stock index plunged nearly 15% in the week to Oct. 16, wiping out about Rp 1,544 trillion ($85.5 billion) in market capitalization as global index provider MSCI considers downgrading the country to standalone market status over persistent concerns about market transparency and accessibility.

The Jakarta Composite Index (JCI) fell 14.91% to 5,185.105 on Friday, down 908.654 points from 6,093.759 at the end of the previous week, according to Indonesia Stock Exchange (IDX) trading data.

The stock market’s total capitalization dropped 15.23% to Rp 9,157 trillion from Rp 10,701 trillion a week earlier, reflecting the scale of the sell-off following MSCI’s announcement.

Foreign investors recorded net sales of Rp 3.34 trillion on Friday, bringing their cumulative net selling for 2026 to Rp 88.19 trillion, according to the exchange.

MSCI is considering reclassifying Indonesia from an emerging market to a standalone market, a category for markets where investor access has deteriorated severely. The potential downgrade comes after the index provider raised concerns about opaque share ownership structures and suspected coordinated trading in the Indonesian stock market.

Indonesian authorities have introduced reforms in response, including stronger disclosure requirements for shareholders holding more than 1% of a listed company and a minimum free float requirement of 15%.

However, MSCI said feedback from market participants indicated that the measures had failed to resolve concerns about market functioning and continued coordinated trading.

“Feedback from market participants suggests that a reclassification to ‘frontier markets’ would not properly recognize the depth of the market problems,” MSCI said in a statement published on Friday.

The index provider had previously warned that Indonesia could be downgraded from emerging market to frontier market status. Its latest assessment raises the prospect of an even more severe classification change if authorities fail to demonstrate meaningful progress.

MSCI is weighing whether to launch a formal consultation on the standalone market downgrade, with further progress expected to be assessed at its November review.

A standalone classification could affect Indonesia’s position in global investment benchmarks and potentially reduce the country’s appeal to international investors whose portfolios track MSCI indexes.

The Indonesia Stock Exchange, the Financial Services Authority (OJK) and other market stakeholders said they were strengthening coordination to maintain market integrity and preserve investor confidence following MSCI’s announcement.

The exchange said it respected MSCI’s independence and its right to assess markets under its established methodology. It also plans to seek further clarification from MSCI on the basis for its assessment, taking into account the reforms already implemented by Indonesian authorities.

The exchange stressed that MSCI’s proposal remained under consultation and did not constitute a final decision. The consultation period is scheduled to run until April 30, 2027.

The IDX said it would continue working with the OJK and other stakeholders to ensure orderly, fair and efficient trading while maintaining the confidence of domestic and international investors.

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