Jakarta Composite Halts Trading Amid MSCI Downgrade Fears

• The Jakarta Composite Index experienced a 30-minute trading halt after slumping 7.4%, its steepest single-day fall in over nine months.
• MSCI flagged concerns over Indonesia's market accessibility, particularly limited free float and concentrated ownership structures, raising downgrade risks.
• The index provider temporarily suspended certain index adjustments and will review Indonesia's progress in May.
• Foreign investors have pulled out significant capital, with net equity outflows reaching $192 million in one week and 3 trillion rupiah this week.
• Indonesia's stock exchange is committed to improving transparency and aligning with MSCI's expectations, including engaging on free-float thresholds.

Why It Matters: MSCI's concerns over Indonesia's market accessibility and limited free float triggered a trading halt and selloff.