Indonesia Market Halted Second Day; Goldman Warns $13 Billion Risk

• Trading on the Jakarta Composite Index was halted for 30 minutes for the second consecutive day after a 10% fall.
• The Indonesian Rupiah experienced its biggest single-day fall since October, declining 0.5% intraday.
• MSCI warned about the investability of Indonesian stocks and will halt index changes until issues are resolved.
• This marks the worst two-day drop for the Jakarta Composite Index since 1998, with MSCI threatening a 'frontier-market' downgrade.
• Concerns include low free float for listed companies, thinly traded stocks, and potential manipulation by wealthy individuals; Goldman Sachs warns of a $13 billion outflow risk.

Why It Matters: Indonesia's stock market faces a severe downturn and potential downgrade due to investability concerns and low free float.