Indonesian stocks suffered a dramatic selloff on Thursday, putting the market on course for its largest two-day decline on record as fears of a potential downgrade to frontier market status rattled investors. The sharp decline followed warnings from global index provider MSCI and a downgrade in outlook from U.S. investment bank Goldman Sachs. MSCI raised concerns about market transparency in Indonesia, citing issues around stock ownership, trading mechanisms, and price formation. Goldman Sachs responded by cutting its recommendation on Indonesian stocks to “underweight,” estimating that an MSCI downgrade could trigger capital outflows ranging from $2.2 billion to $7.8 billion, even though its strategists said such a downgrade remains unlikely. Still, the bank warned that the market is likely to stay under pressure and does not currently represent an attractive entry point.