00:00Indonesia's stock market has suffered a dramatic two-day sell-off.
00:04Its benchmark index plunged 11.6% on Friday, then fell more than 5% on Monday.
00:10The losses pushed the market to a six-year low.
00:13The trigger was a warning from global index provider MSCI.
00:16It is considering moving Indonesia out of its emerging market category
00:20and into a more restrictive classification called standalone status.
00:25That distinction matters because global investment funds track MSCI indexes
00:30when deciding where to put their money.
00:32If Indonesia loses its current status,
00:34some funds could reduce their exposure to Indonesian shares.
00:38But the downgrade has not been finalized.
00:40MSCI's concerns include limited transparency around share ownership
00:45and questionable trading practices.
00:47The warning has intensified pressure on Indonesian market officials
00:51to address those concerns.
00:52The next key question is whether reforms can restore investor confidence
00:57before MSCI makes its decision.
00:59Disclosure.
01:00This video contains stock footage and content created or enhanced
01:03using AI-assisted tools.
