Indonesia's benchmark stock index plunged over 5% on Monday to its lowest level in six years, driven by intensifying concerns over a potential MSCI downgrade. MSCI proposed reclassifying Indonesia from an emerging market to stand-alone status last Friday, with a final decision expected by June. Goldman Sachs warned in a Sunday note that a full removal from MSCI's emerging-market indexes could trigger approximately $5.6 billion in passive fund outflows. The bank maintained its underweight rating on Indonesian equities and expects the central bank to raise interest rates twice more by 25 basis points each in Q4 2026 and Q1 2027.