EL7.AI
StocksMediumUpdated×3•Originally published 19 October 2026•Updated 19 October 2026•
1 min read

MSCI Prepares to Remove Indonesia from Global Emerging Market Indexes

Key Facts

1MSCI is preparing to expel Indonesia from its global indexes, serving as a major wake-up call for the country's financial markets.

MSCI is preparing to remove Indonesia from its global emerging market indexes. Investing.com reported that the move follows a period of heightened market volatility and concerns regarding the country's ability to meet the criteria for inclusion in global benchmark indexes.

The decision follows a significant slump in Indonesian equities as the market reacts to downgrade fears. Local stocks have faced sustained downward pressure, reflecting broader concerns over the country's financial market stability and its eligibility for international investment flows.

An interest rate decision in Indonesia is scheduled for October 21, 2026. This upcoming central bank meeting will be a key event for investors as the country navigates the potential loss of its status within global index frameworks.

Latest Updates · 3

  1. Notable·

    Update: Indonesia expelled tightly held companies from the Jakarta index on October 19, 2026. This defensive move by the local exchange is a direct attempt to prevent a downgrade by MSCI and address specific investability concerns.

  2. Notable·

    Update: The Indonesia IDX Composite Index experienced a sharp decline, closing down 4.02% on October 19, 2026. This drop reflects accelerating sell-offs in the local market following news of the country's potential removal from MSCI indexes.

  3. Notable·

    Update: Indonesian stocks dropped to a six-year low following the warning from MSCI. This sharp decline reflects the market's immediate reaction to concerns over the country's potential removal from global emerging market indexes.