INDONESIAN stocks slumped 7% on Wednesday after index provider MSCI flagged investability risk citing a lack of transparency in ownership structure and free float data, and raising the possibility of downgrading Indonesian equity markets.

MSCI said it would reassess Indonesian market accessibility for global investors should there be no meaningful improvement in transparency by May. Reassessment could lead to a lower weighting for Indonesian stocks in MSCI's emerging-market indexes or even a downgrade to frontier-market status.