The Jakarta Composite at one point fell 11.6% on Oct. 16, after MSCI proposed on Oct. 15 moving Indonesia from emerging to standalone market status, citing concerns over shareholding transparency, suspected coordinated trading and enforcement. The steepest one-day drop since 1998 wiped out about $65 billion in market value and put pressure on the rupiah. Reuters estimates cited in the piece suggest Indonesia could lose $3-6 billion from passive funds and up to $15 billion from active investors if reclassified, though these are scenarios rather than actual outflows. The article explains that MSCI is not a regulator, but its indexes are widely used as benchmarks, so a reclassification can trigger large trades. The debate centers on the transparency and predictability of MSCI's process, with a final decision expected by June 30, 2027.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: MSCI có quá quyền lực? Cú sốc Indonesia phơi bày sức ảnh hưởng của các nhà cung cấp chỉ số
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