Indonesia stock index drops over 5% after MSCI suggested downgrade
Business
Indonesia's main stock index dropped over 5% on Monday, hitting its lowest point in six years.
The sell-off comes after MSCI suggested downgrading Indonesia's market status, which could push the country out of major global indexes and scare off foreign investors.
Experts warn of $5.6B Indonesian outflows
If MSCI goes through with the downgrade, experts warn it could trigger around $5.6 billion in passive fund outflows, basically a lot of money leaving fast.
Foreign ownership in Indonesian stocks has already fallen sharply this year, and things could get tougher if interest rates rise or earnings stay weak.
For now, investors are pretty cautious about what comes next.