Politics · Indonesia · 4 hrs ago
Prabowo Rejects MSCI Pressure as Indonesia Faces Market Reclassification
Indonesian President Prabowo Subianto said the country would not be intimidated by MSCI, a global provider of stock market indexes.
MSCI is consulting on moving Indonesia from emerging-market to standalone status, citing concerns about ownership transparency and coordinated trading.
Its warning triggered a sharp sell-off in Indonesian shares last week.
Financial regulator chief Friderica Widyasari Dewi said market reforms will continue, including stronger enforcement and improvements to transparency, integrity and liquidity.
A downgrade could reduce investment linked to major emerging-market indexes, potentially prompting foreign investors to reassess their holdings.
MSCI says it will keep monitoring the market and engaging with Indonesian authorities and investors.
MSCI is due to announce its final decision by June 30, 2027.
President Prabowo Subianto accused MSCI of trying to intimidate Indonesia after the index provider warned it was considering changing the country’s market classification.
MSCI cited concerns including transparency in share ownership and suspected coordinated trading practices.
The warning was followed by a sharp two-day sell-off in Indonesian stocks, raising concern about potential capital outflows.
Indonesia’s financial regulator says reforms will continue, including work on market integrity, transparency, liquidity and enforcement.
MSCI’s final decision is scheduled to be announced by June 30, 2027.
- Who
- Indonesian President Prabowo Subianto and global index provider MSCI. Indonesia’s financial regulator, OJK, also responded.
- What
- Prabowo rejected what he called pressure from MSCI after it began consulting on a possible change to Indonesia’s market classification.
- When
- Prabowo spoke on October 21, 2026. MSCI announced its consultation on October 16, 2026.
- Where
- Jakarta, Indonesia.
- Why
- MSCI cited concerns about transparency in share ownership, suspected coordinated trading and the progress of market reforms.
Indonesian government and OJK
MSCI
Market classification
Indonesian government and OJK
Prabowo rejected the prospect of Indonesia being pressured by MSCI. OJK says it is working to keep Indonesia in the emerging-market category.
MSCI
MSCI is consulting on a proposed change from emerging-market to standalone status.
Assessment of reforms
Indonesian government and OJK
OJK says reforms are continuing to improve integrity, transparency, liquidity and enforcement.
MSCI
MSCI cited insufficient consistent and significant progress on reforms and concerns about market practices.
OJK says market improvements began in January under the president’s direction.
MSCI announced a consultation on a proposed change to Indonesia’s classification from emerging market to standalone market.
Prabowo rejected pressure from MSCI in a Cabinet meeting, and OJK’s chair said reforms would continue.
MSCI is scheduled to announce its final decision by this date.
- Proposed classification change
- Emerging market to standalone market
- MSCI consultation announced
- October 16, 2026
- Final decision deadline
- June 30, 2027
- Market sell-off
- Sharp two-day sell-off
- OJK fine total
- Rp2.1 trillion
5 sources
Prabowo Accuses MSCI of Intimidating Indonesia After Stock Market Rout
Bos OJK Respons Pesan Prabowo ke MSCI: Indonesia Berani dan Kuat
Prabowo Says Indonesia Will Not Be Intimidated by MSCI
What people are saying
The Indonesian nation fears no one and will not be cowed
Indonesia is brave and strong
its decisions are based on transparent, rules-based methodologies