MSCI raises concerns about Indonesia’s transparency again, emerging market status faces downgrade risk
- Index provider MSCI released a market accessibility assessment report on Thursday, pointing out that Indonesia's stock market faces insufficient transparency in equity, instances of collusive trading, a lack of efficient offshore channels in the foreign exchange market, and heavy onshore restrictions. These factors severely impede fair price formation and limit investors' ability to assess the true free float of listed companies, further diminishing the country's investment appeal.
- Next week, MSCI will decide whether to downgrade Indonesia from an "emerging market" to a "frontier market." If downgraded, this could trigger capital outflows of up to 13 billion USD. Since the first warning in January, Indonesia’s capital market has continued to plummet; although authorities introduced reforms such as doubling the minimum free float ratio for listed companies to 15% and saw the collective resignation of exchange and regulatory senior executives, the downward trend has not been reversed. Previously in May, MSCI had already removed six companies (mostly tycoon-affiliated firms) from its index.
- The Jakarta benchmark index has plunged over 29% this year, with foreign investors dumping about 3.65 billion USD during the same period. At the same time, President Prabowo’s populist policies and fiscal concerns have pressured the rupiah to historic lows, forcing the central bank to raise interest rates. Both Moody’s and Fitch downgraded Indonesia's debt rating outlook to "negative" earlier this year, reflecting continued deterioration in investor confidence.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
siRNA rising star ADARx (ADRX.US) launches $350 millions IPO, AbbVie subscribes to 4.9% of shares with a maximum investment of $100 millions
ADARx plans to raise $350 millions and list on Nasdaq. AbbVie will invest up to $100 millions to acquire a 4.9% stake, with a median valuation of $1.8 billions.
Roche (RHHBY.US) weight loss injection shows positive mid-term trial results: average weight loss of 15.5% over 48 weeks, blood sugar levels drop by 2.65%.
The experimental weight-loss injection enicepatide simultaneously lowered blood sugar and body weight in overweight or obese patients with type 2 diabetes during a mid-stage clinical trial.
SPAC company Silicon Valley Acquisition II (SVATU.US) applies for US stock IPO, aiming to raise up to 220 millions USD.
The blank-check company (SPAC) Silicon Valley Acquisition II submitted a filing to the U.S. Securities and Exchange Commission (SEC) on Monday, planning to raise up to 220 millions USD through an initial public offering (IPO).
China’s gold imports exceeded 1,000 tons by August, surpassing the total for all of 2025.
Crypto prices
More
