Danantara flags investor confidence concerns over MSCI proposal
Investment chief Pandu Sjahrir stressed that the proposed classification downgrade was not final, while FTSE Russell retained Indonesia’s existing status.
Indonesia’s investment agency Danantara has called for MSCI’s proposed downgrade of the country’s market classification to be treated seriously, citing its bearing on investor confidence. Separately, its chief investment officer, Pandu Sjahrir, emphasised that the proposal remained short of a final decision.
In Instagram comments cited on 23 October 2026, Pandu pointed to FTSE Russell’s continued classification of Indonesia as a secondary emerging market. He noted that the index provider was still monitoring how effectively Indonesia’s capital-market reforms were being implemented.
Pandu said reform efforts needed sustained implementation and visible outcomes, with greater transparency, fairness and investor confidence among the priorities. He expressed support for work by the Financial Services Authority, Indonesia Stock Exchange, Bank Indonesia, the Finance Ministry and other stakeholders within their respective responsibilities.
He also argued that gains in share indices were not sufficient measures of market strength. In his view, the market should give companies with sound business prospects access to funding while enabling the public to share in economic growth.
Pandu said the strength of Indonesian companies needed to lead to productive investment, business expansion and job creation. He added that problems requiring correction did not mean companies listed on the country’s exchange had weak fundamentals.
