Prabowo accuses MSCI of trying to intimidate Indonesia after market rout

Global index provider MSCI threatened to downgrade Indonesia's equities to standalone market status last week, sparking a significant market decline. President Prabowo Subianto dismissed MSCI's actions as an attempt to intimidate the nation, stating that Indonesia would not be afraid. The announcement alarmed the country, as it could provoke capital flight and remove Indonesia from major emerging market index flows.

Prabowo emphasized Indonesia's strength, courage, and willingness to make sacrifices, warning against surrender. MSCI maintains that its decisions are based on transparent, rules-based methodologies and will continue to monitor the Indonesian market. The Indonesian government and investors have strongly rejected allegations of involvement from Singapore state investors Temasek and GIC in pressuring MSCI to issue the warning.