Prabowo accuses MSCI of trying to intimidate Indonesia after market rout
MSCI ratcheted up the pressure on Jakarta by announcing that it could demote Indonesia's equities to "standalone" market status, claiming the country had not done enough to crack down on coordinated trading practices in its stock market.
Global index provider MSCI has increased the pressure on Indonesia by warning it could downgrade the country's equities to a standalone market status, alleging that Indonesia has failed to effectively address coordinated trading practices in its stock market. President Prabowo Subianto responded with a defiant tone, accusing MSCI of attempting to intimidate Indonesia and declaring that the Indonesian nation "fears no one" and will not be cowed.
The threat of a downgrade triggered a significant two-day stock market decline, potentially causing capital flight and cutting Indonesia off from major emerging market index flows. MSCI defended its decision, stating that it follows transparent and rules-based methodologies and will continue to monitor developments in Indonesia while engaging with market participants and authorities.
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- Prabowo accuses MSCI of trying to intimidate Indonesia after market rout channelnewsasia.com
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