Markets: Indonesia's stock markets continue to slide - meeting with MSCI on Monday

Jakarta. The Jakarta stock exchange suffered another sharp decline on Monday.

After the index operator MSCI announced on Friday that it wanted to exclude the Indonesian stock exchange from its international stock indices, the Indonesian leading index fell by more than eleven percent. On Monday he lost another four percent. This is the sharpest drop in prices on the Indonesian stock market since the Asian crisis in the 1990s.

Friday's rating came as a surprise to the Indonesian stock exchange. "We have not received any indication, neither from MSCI nor through other parties, that an announcement like last Friday's was imminent," Hendrik told reporters in Jakarta.

MSCI has long criticized the Jakarta stock exchange due to a lack of transparency and suspicion of price manipulation. At Monday's meeting, government officials plan to present measures to increase the transparency of Indonesia's stock market operations.

The index provider originally threatened to ban the country from the MSCI Emerging Markets Index and instead include it in the Frontier Market Index, which has lower requirements. On Friday, MSCI cited much more far-reaching consequences: Indonesia could not be listed in any international stock index in the future and would then be an independent market.