Indonesia awaits MSCI key decision or may trigger $13 billion outflow of funds.

Indonesia will face a crucial test this month, as MSCI Inc. will decide whether to further downgrade Indonesia's rating, and investors have long questioned the resilience of the world's worst-performing stock market. Some analysts have suggested that if the index compiler downgrades Indonesia from emerging market to frontier market, global funds may withdraw up to $13 billion in funds. This will further pressure the Jakarta Composite Index, which has already dropped nearly 28% this year due to concerns about this decision and doubts about President Joko Widodo's economic management abilities. With recent days seeing Indonesian assets being sold off continuously, causing worries that foreign outflows from the stock market this year could reach nearly $4 billion, this decision has become even more critical. Maintaining its status as an emerging market - which is the basic expectation of most investors - will help restore some investors' confidence and provide some breathing space for Widodo to revive economic growth.