Indonesian stocks plunged 630 points, or 10.8%, to around 5,233 by noon Friday, marking their steepest one-day decline since January 1998. The sell-off followed index provider MSCI’s warning that it could downgrade Indonesia to standalone market status, citing persistent concerns over investability in Southeast Asia’s largest economy. The potential move threatens significant capital outflows, with Goldman Sachs previously estimating up to $13 billion in withdrawals. MSCI’s final decision will be due by June 30, 2027. Indonesia’s financial regulator said it was “carefully reviewing and paying serious attention to MSCI’s assessment." All major sectors recorded steep losses, led by basic materials, energy, financials, and infrastructure. The country’s four largest banks tumbled between 8.5% and 14%, while Telkom Indonesia (-11.7%), Astra Intl. (-9.6%) and Jasa Marga (-14.8%) also posted deep losses. For the week, markets are on track to slump around 14%, reversing modest gains previously.