Indonesian Stocks Plunge 11% as MSCI Threatens Index Removal

Indonesian stocks fell 11 percent after MSCI warned it may remove the country from its widely followed indexes. MSCI is a global provider of market indexes, which are lists that track the performance of stocks and guide where international investors put their money. The drop came as investors reacted to the threat of removal, which could push foreign funds to sell Indonesian shares. An index removal would mean Indonesian stocks no longer appear in MSCI benchmarks, reducing demand from global funds that follow them. The sell-off highlights how sensitive Indonesia's market is to decisions by major index providers. Further details on MSCI's review and the government's response were not immediately available.