Destry says global investor regrets MSCI review of Indonesia’s market status

Bank Indonesia Governor Destry Damayanti said a major global investor had expressed regret over MSCI’s review of whether to move Indonesia’s equities from emerging-market to standalone status. Speaking at KADIN’s national leadership meeting in Jakarta on 29 October 2026, she said the investor saw substantial potential in Indonesia’s financial markets, supported by economic growth.

Destry said the investor regarded US equities as too risky after technology-driven valuation gains. She also relayed concerns about Europe, citing high debt ratios and wide budget deficits as reasons the investor found those markets less attractive.

She welcomed the Financial Services Authority’s swift response to concerns over investor confidence. Bank Indonesia and the Financial System Stability Committee, known as KSSK, had also met and were working together to reassure global investors, she said.

The prospect of reclassification prompted foreign capital outflows and put pressure on the rupiah. Refinitiv data showed the currency closed at Rp18,125 per US dollar, strengthening 0.28 per cent from Rp18,175 at the close on 28 October 2026.