Prabowo accuses MSCI of trying to intimidate Indonesia after market rout
JAKARTA: Global index provider MSCI was trying to “intimidate” Indonesia, but the country would not be afraid, President Prabowo Subianto told his Cabinet on Wednesday in his first public response to last week’s downgrade warning.
Global index provider MSCI accused Indonesia of intimidating the country, but President Prabowo Subianto responded by stating that Indonesia would not be cowed. MSCI threatened to downgrade Indonesia's equities to standalone market status due to the country's failure to crack down on coordinated trading practices. This announcement led to a two-day stock market rout, raising concerns about capital flight and the loss of major emerging market index flows for Indonesia, which has a US$1.5 trillion economy.
Prabowo emphasized Indonesia's strength and courage, refusing to surrender to foreign pressure. MSCI maintained that its decisions followed transparent and rules-based methodologies, and would continue to monitor developments in the Indonesian market.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
