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View all search resultsWhat's behind Indonesia's worst stock crash in decades?
The Jakarta Composite Index plummeted around eight percent Wednesday and as much as 10 percent Thursday, its worst performance since 1998 during the Asian financial crisis.
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A logo of the Indonesia Stock Exchange (IDX) is seen at the IDX building in Jakarta on Jan. 29, 2026, (AFP/Yasuyoshi Chiba)
I
ndonesian stocks plunged this week after global index compiler MSCI threatened a downgrade over transparency, sparking a sell-off among investors already nervous about the country's political climate.
The Jakarta Composite Index plummeted around eight percent Wednesday and as much as 10 percent Thursday, its worst performance since 1998 during the Asian financial crisis.
The market recovered slightly Friday after regulators pledged reforms.
What is MSCI?
A New York-based financial company, MSCI produces international indexes used by investors as a benchmark to balance their portfolios.
It has a significant impact on investment decisions through its flagship emerging markets index, which contains 1,200 companies with a market capitalisation more than $10 trillion.
Fund managers worldwide keep a close eye on what countries are included or excluded in MSCI's indexes as that can trigger adjustments to their portfolios.
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