Indonesia gets a ‘wake-up call’ as MSCI prepares to expel it from global indexes

By Stefanno Sulaiman and Ankur Banerjee JAKARTA/SINGAPORE, Oct 16 (Reuters) Indonesia s stock market is no longer worthy of emerging market status, MSCI said on Friday, laying out a plan to remove it from a suite of indexes tracked by funds, a shock move that sparked the steepest one-day drop in Jakarta shares since 1998. The benchmark stock index, already the world s worst performer this year, plunged 11% to a ​six-year low, while the rupiah slid 0.6% to 18,070 per US dollar, its weakest level since late July. Indonesian equities have struggled since January ‌when MSCI froze Indonesia in its indexes and threatened a downgrade to frontier status because of opacity in ownership and trading behaviour. On Friday, MSCI said reforms to address those problems have not made sufficient progress and that even a downgrade to frontier wouldn t reflect the severity of issues. Significant concerns remain around market dysfunction, MSCI said. Accordingly, MSCI considers Indonesia s continue