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Indonesian President Prabowo Subianto declared that Indonesia will not be \u201cintimidated\u201d by MSCI\u2019s proposal to downgrade the Southeast Asian country\u2019s market to \u201cstandalone\u201d status, alongside Argentina, Nigeria, and Ukraine.\u00a0<\/p>\n
\u201cOur country continues to face all sorts of disturbances, including the MSCI. They are trying to intimidate us,\u201d\u00a0Prabowo said during an address to his cabinet. \u201cI simply want to tell MSCI: the Indonesian nation fears no one and will never back down.\u201d<\/p>\n
\u201cWe have the strength, the courage and we are willing to make sacrifices, and we refuse to surrender,\u201d he added.<\/p>\n
On Oct. 15, MSCI said it was considering downgrading Indonesia to \u201cstandalone\u201d status, which would exclude the Southeast Asian country from its major global and regional indexes. The index provider cited \u201ccontinued suspected coordinated trading behavior and lack of evidence of meaningful enforcement.\u201d<\/p>\n
As many investors use MSCI\u2019s indexes as the basis for their funds, a downgrade could lead to billions of dollars of investment fleeing the country. A final decision on Indonesia\u2019s status will come by the end of June 2027.<\/p>\n
Indonesia has labored under the threat of a downgrade for most of 2026. In January, the index provider said it was considering lowering the country to \u201cfrontier\u201d status, one rung below the country\u2019s current \u201cemerging\u201d status. That downgrade threatened to pull as much as $13 billion in passive investment flows from the country. The current MSCI proposal\u2014which would downgrade the country below \u201cfrontier\u201d\u2014would likely lead to even greater outflows.<\/p>\n
The Jakarta Composite Index is down by more than 10% since MSCI announced its proposal. The benchmark index is down nearly 40% for the year so far.<\/p>\n
Mounting pressure<\/p>\n
The MSCI reclassification is only the latest challenge to Prabowo, now entering his third year in office. His approval rating has dropped to just 44.5%, according to a poll from Saiful Mujani Research and \u200bConsulting cited by Reuters, primarily due to public dissatisfaction over the state of the economy. The same pollster put Prabowo\u2019s approval at 81% in November.\u00a0<\/p>\n
More than six in 10 Indonesians say they are unhappy with Indonesia\u2019s free meal program, one of the president\u2019s flagship social policies. Seventy-one percent also doubt that his village cooperatives policy\u2014which plans to establish hubs in roughly 80,000 communities to handle basic-goods distribution, savings, and other rural services\u2014would succeed.\u00a0<\/p>\n
Wildfires in Indonesia are also the source of widespread haze that\u2019s blanketing much of the region and making Southeast Asian cities such as Singapore and Kuala Lumpur among the world\u2019s most polluted. Singapore is now threatening to prosecute companies responsible for the wildfires.<\/p>\n
Prabowo recently admitted that he\u2019s open to foreign help to control the fires. But he\u2019s also bristled at criticism. \u201cIndonesia is a polite and patient nation. Our country is often insulted, but believe me, our nation does not want to be insulted all the time,\u201d Prabowo said at Wednesday\u2019s cabinet meeting.<\/p>\n
Indonesians are increasingly protesting Prabowo\u2019s administration. Reuters reports that more than 9,000 police officers were deployed across Jakarta this week, ahead of events marking Prabowo\u2019s second year in office.\u00a0<\/p>\n
Diplomatic flashpoint<\/p>\n
The market turmoil is now becoming a diplomatic\u00a0 issue. Former trade minister Muhammad Lutfi\u2014who served under presidents Susilo Bambang Yudhoyono and Joko Widodo\u2014accused Singapore state investors Temasek and GIC of pressuring MSCI to trigger a sell-off, so that foreign investors could \u201cscoop up our strategic assets at discounted prices.\u201d\u00a0<\/p>\n
Both entities denied the allegations, with a Temasek executive calling them \u201cpatently untrue.\u201d<\/p>\n
The spat is forcing Indonesian market officials to play damage control. Jeffrey Hendrik, president director of the Indonesia Stock Exchange (IDX), pushed back against the conspiracy claims on Oct. 20.<\/p>\n
\u201cWe have always believed, and continue to believe, that global index providers are independent,\u201d Hendrik said.<\/p>\n
#Indonesias #Prabowo #remains #defiant #face #MSCI #double #downgrade<\/p>\n","protected":false},"excerpt":{"rendered":"
Indonesian President Prabowo Subianto declared that Indonesia will not be \u201cintimidated\u201d by MSCI\u2019s proposal to…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[245],"tags":[9347,1694,5924,3182,5922,5923,15437,23471,1622],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/18855"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18855"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/18855\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18855"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18855"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18855"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}