Indonesian President Prabowo Subianto defiantly stated that the nation will not be intimidated by MSCI Inc.'s potential downgrade of Indonesia's market status. Speaking to cabinet members in Jakarta, he emphasized national resilience against external pressures, without detailing specific countermeasures. This follows MSCI's consideration of demoting Indonesia from emerging-market to standalone status due to governance and market-functioning concerns, which previously triggered significant stock market declines and currency weakness.
In response, Indonesian regulators have implemented fines for market misconduct and plans to adjust the benchmark index. Prabowo also addressed regional land fires, labeling deliberate burning as 'environmental terrorism' and vowing to revoke permits of responsible corporations, while condemning the smuggling of tin, coal, and subsidized fuels as economic sabotage.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing