Indonesian billionaires lose $6B in a day
Reports indicate that the Indonesian stock exchange experienced a significant drop in its market value, losing approximately $65 billion in a single session. This decline came after MSCI announced its intention to reclassify the Indonesian market from an emerging market to an independent market due to concerns over lack of transparency, unclear ownership structures, and coordinated trading. This announcement caused the Jakarta Stock Exchange index to plummet by 11.57%, marking the largest decline since January 1998. As a result, foreign investors have withdrawn $4.7 billion since the start of 2026, with expectations that the reclassification could lead to an additional $15 billion being pulled from the country. Despite government efforts to enhance transparency, MSCI still doubts the effectiveness of the reforms and plans to finalize consultations on the reclassification by the end of June 2027, posing further risks to the market and Indonesia's economy.
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