Indonesia's Financial Services Authority met with officials from the country's stock exchange on Sunday to discuss MSCI Inc.'s threat to relegate the nation to standalone status, a move that could force billions of dollars in capital outflows. Surprisingly, several prominent Instagrammers were present at the gathering, including Rivan Kurniawan, Aline Wiratmaja, Andhika Diskartes, and Leon Hartono. Chairwoman Friderica Widyasari Dewi is a believer in the power of online personalities, or KOLs, in a market dominated by millions of retail investors. However, some attendees were jarring that so much time was spent on social media strategy when authorities urgently need to restore the confidence of institutional money managers. Kurniawan, who has written several books on investing, said he attended as an investor and licensed investment adviser, conveying complaints, feedback, and market reactions from retail investors. Hartono, with a YouTube channel of around 833,000 subscribers, recently uploaded a video discussing the MSCI reclassification threat, arguing that consequences could extend beyond the stock market. While communicating to retail investors is important, several professional investors left feeling less confident that regulators have a sufficiently focused strategy to avert a downgrade.
The divide underscores the challenge for Indonesian authorities — convincing global investors that longstanding concerns over ownership transparency, coordinated trading, and enforcement are being addressed while keeping millions of retail investors confident. With more than 10 million people having stock trading accounts and much of the population getting information via social media, financial influencers play a big part in the stock market, according to retail investor Joseph Gabetua from Bandung. Another retail investor, Felicia Kurniawan from Surabaya, noted that with the Indonesian economy not in great shape, people believe influencers help them understand parts that regulators can't explain.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing