Prabowo accuses MSCI of intimidation over Indonesia downgrade warning
The index provider said its decisions follow transparent rules after warning that Indonesian equities could be moved to standalone market status.
Indonesian President Prabowo Subianto accused MSCI of seeking to intimidate the country after its warning of a possible market downgrade sparked a record stock sell-off over two days.
Speaking to his Cabinet in his first public response to the warning, Prabowo said Indonesia would not be intimidated. The speech was carried on the government's official YouTube channel.
MSCI has said it could move Indonesian equities into its standalone market category because the country had taken insufficient action against coordinated share trading. Such a downgrade would threaten capital outflows and Indonesia's access to investment linked to major emerging-market indices.
Responding by email, MSCI said transparent, rules-based methods underpin its decisions. It said it would keep tracking Indonesia's market and maintain contact with authorities and market participants.
Senior economic minister Airlangga Hartarto also questioned why the potential downgrade had not been raised when MSCI met Indonesian officials in Bangkok days before the warning.
Other lawmakers urged scrutiny without dismissing MSCI's concerns. Hanif Dhakiri, a National Awakening Party member on Parliament's finance oversight committee, called for transparent and objective methods applied consistently across markets. Opposition PDI-P lawmaker Said Abdullah said Indonesia should treat the concerns seriously while also examining the provider's judgements.
