Indonesia stocks drop 4.3% as MSCI weighs market downgrade

Indonesia's benchmark stock index fell sharply Monday after MSCI opened a consultation on possibly reclassifying the country's market from emerging to standalone. The Jakarta Composite Index dropped 223.23 points, or 4.31%, to 4,961.88 at the open, while the LQ45 slid 5.52% to 480.50. MSCI cited rising concerns over investability, including unclear share ownership structures and suspected coordinated trading. Indonesian authorities have responded with reform steps including disclosure of shareholders owning more than 1%, more detailed investor classification, reporting on high shareholding concentration and a roadmap to a 15% free-float minimum. MSCI said reforms will need consistent implementation and lasting evidence of impact.