MSCI’s possible double downgrade puts Indonesia’s emerging-market status at risk

The Economist reports that MSCI’s Oct. 15 warning raised the possibility of moving Indonesia two classification levels, from emerging to standalone market. It says MSCI blamed opaque listings and suspected pump-and-dump schemes. Bloomberg described volatility in stocks and bonds after the warning. The Economist also reported that investors had been fleeing and Indonesian stocks had lost half their value in dollar terms in 2026. No downgrade was announced.