MSCI threatens to downgrade Indonesia's stock market
Index provider MSCI has warned it may drop Indonesia from its indexes, prompting a sharp stock slide and investor worries.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
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What happened
Index provider MSCI has threatened to drop Indonesia's stock market from its indexes, a potential downgrade that pushed Indonesian stocks sharply lower. An economist said the warning tests the credibility of the market and urged reforms to restore investor trust. The threat adds to a deepening loss of investor confidence in the economic policies of Indonesian President Prabowo Subianto.
Why it matters
A downgrade could further erode investor confidence in Indonesia's market. The economist said reforms are needed to restore trust.
Coverage
- Indonesian Stocks Plunge as MSCI Threatens to Drop Market from Indexes (The New York Times)
- MSCI Warning Raises Existential Questions for Indonesia's Stock Market, Economist Says (jakartaglobe.id)
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