Business · Singapore Bureau
Prabowo dismisses MSCI downgrade threat as Indonesia stands firm
Indonesia's president has rejected concerns over a potential MSCI index downgrade, vowing the nation will not be deterred by external pressure. The warning from the index provider sparked a sharp two-day selloff in Indonesian equities.
LSN Singapore ·
President Prabowo Subianto said on Thursday that Indonesia would not be "frightened" by MSCI's proposed downgrade of the country's market status, signalling the government's resolve to weather the index provider's concerns. The defiant stance comes after MSCI flagged potential changes to Indonesia's classification, triggering volatility in local stock markets. Indonesian equities experienced a sharp decline over two consecutive trading sessions following the announcement, as investors reassessed their positions in the region's largest economy. The index provider had cited structural concerns about market accessibility and regulatory frameworks in its preliminary assessment. Prabowo's comments reflect Jakarta's determination to address underlying issues while maintaining confidence in Indonesia's economic fundamentals and long-term investment appeal. Officials are expected to engage with MSCI in coming weeks to discuss specific areas of concern and potential remedial measures.