Is 19 billion dollars leaving Indonesia due to MSCI

MSCI has assumed a downgrade of the Indonesian stock market from an emerging market to an independent market, which could lead to the exit of around $19 billion in foreign investments, following the Jakarta Composite Index's decline of up to 11.4% — its largest daily loss since 1998. This warning reflects the company's concerns over weak transparency, ownership structures of companies, and trading behavior. The move may result in reduced capital flows from global investment funds, especially if the decision is finalized. Indonesian authorities are still consulting, and a final decision is expected in April 2027, with the need to improve transparency to boost investor confidence and restore market stability.

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