MSCI's potential indexing methodology shift is sending ripples through emerging markets. If the changes go ahead, global funds could pull more than $2 billion out of Indonesian equities over the coming months. This move highlights a bigger headache: the investability challenges facing Southeast Asia's largest stock market. The reasoning here is straightforward—when major indices adjust their weightings or inclusion criteria, massive capital flows follow. Institutional investors track these benchmarks closely, so any recalibration can reshape where billions in assets end up. For Indonesia, it means tighter liquidity and potentially steeper market pressure. Smaller markets often feel these shifts harder than developed exchanges. The timing matters too. With macro uncertainty already weighing on emerging market sentiment, index-driven outflows could amplify volatility in already-sensitive regional equities.