Indonesian Stocks Plunge in Worst Daily Drop Since 1998 on MSCI Proposal

Key Facts

1Indonesian stocks recorded their largest daily decline since 1998.

2MSCI is considering downgrading Indonesia to Standalone Market status.

Indonesian stocks recorded their largest daily decline since 1998. Investing.com reported that the plunge followed a proposal by MSCI to downgrade Indonesia's market classification to Standalone Market status.

The potential reclassification triggered a massive exit of foreign capital from the Indonesia Stock Exchange, leading to systemic market panic. This sharp decline occurred amid broader regional economic shifts, following data from October 12, 2026, which showed annual inflation in neighboring India rising to 5.54%.