Indonesia stocks slump to lowest since 2020 after MSCI warning

MSCI launched a consultation to reclassify Indonesia from emerging market to standalone, which could trigger billions in passive outflows. The Jakarta Composite Index fell 5.4% Monday, extending Friday's 12% drop, bringing YTD losses to about 43%. Foreign investors sold 3.34 trillion rupiah on Friday. Goldman Sachs estimates $5.6 billion in passive outflows from MSCI removal, with another $2.7 billion if FTSE Russell follows.