# Indonesian Stocks Crash 10.8% in Worst One-Day Drop Since 1998 on MSCI Warning

- URL: https://stocks.freetheai.org/news/indonesian-stocks-crash-10-8-in-worst-one-day-drop-since-1998-on-msci-warning-e60365
- Published: 2026-10-16T05:13:15Z
- Category: markets; sentiment: bearish; impact: high
- Written by our AI from expert market sources across the web for FreeTheAI Stocks, built by Vibhek Soni
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Indonesian equities suffered a dramatic sell-off on Friday, falling 10.8% or 630 points to around 5,233 by midday. The slide represents the index's sharpest single-day loss since January 1998 and pushed the market to a six-year low, wiping out earlier modest gains to leave stocks down roughly 14% for the week.

The market route followed a warning from index provider MSCI that it could reclassify Indonesia to standalone market status over persistent investability concerns. Such a downgrade threatens substantial capital flight from Southeast Asia's largest economy, with previous estimates from Goldman Sachs projecting potential investor withdrawals of up to $13 billion. Heavy losses occurred across major industries, including energy, basic materials, infrastructure, and financials. The country's four largest banks fell between 8.5% and 14%, while PT Telkom Indonesia dropped 11.7%, PT Astra International declined 9.6%, and PT Jasa Marga sank 14.8%.

Indonesia's financial regulator stated that it is carefully reviewing and paying serious attention to MSCI's assessment. Investors are watching for potential regulatory responses ahead of MSCI's final classification decision, which is due by June 30, 2027.

## Key points

- Indonesian stocks plunged 10.8% to 5,233, marking the market's worst single-day fall since January 1998.
- The crash occurred after MSCI warned it could downgrade Indonesia to standalone market status over investability concerns.
- A downgrade threatens major capital flight, with prior Goldman Sachs estimates projecting up to $13 billion in withdrawals.
- Major sectors fell sharply, led by steep losses in top banks, Telkom Indonesia, Astra International, and Jasa Marga.
- Indonesian financial regulators are reviewing the assessment, with MSCI's final decision expected by June 30, 2027.

## Questions and answers

### Why did Indonesian stocks plunge today?

Indonesian stocks dropped 10.8% after MSCI warned it might downgrade the country to standalone market status due to ongoing concerns about market investability.

### How much capital could leave Indonesia if MSCI downgrades its market status?

Goldman Sachs previously estimated that an MSCI downgrade could trigger up to $13 billion in capital withdrawals from Indonesian equities.

### When will MSCI make a final decision on Indonesia's market status?

MSCI is scheduled to deliver its final decision on Indonesia's market status by June 30, 2027.