Indonesia's Market Plummets Amid MSCI Downgrade Concerns

MSCI's warning has sparked fears of a downgrade, which could trigger foreign capital outflows. The Jakarta Composite Index saw its worst drop in nearly 25 years, with a 30-minute trading halt amid the sharp decline. This selloff has worsened an already dismal year for the local market, making it the worst-performing globally. The rupiah also hit a record low, reflecting investor uncertainty. Analysts suggest the downgrade could lead to long-term capital flight and reduced foreign investment. The situation highlights the vulnerability of emerging markets to global rating changes and market sentiment shifts.