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Indonesia market instability amid MSCI downgrade review

Steady: 1 development in the last 24 hours, 4 in the last 7 days Updated 4 hours ago

The latest in this situation

  1. Bayan Resources stock is listed on the Indonesia Stock Exchange as the IDX undergoes an overhaul in response to MSCI warnings.
  2. MSCI issued a specific threat to downgrade Indonesia's stock market status.
  3. MSCI started consultation on Indonesia's market status amid regional index comparisons.
  4. MSCI warns of downgrade due to opaque ownership; FSA reforms and BI stabilize rupiah.
  5. FSA/IDX announced reforms tied to MSCI's review of Indonesian governance.

How it started

MSCI Considers Downgrading Indonesia's Market Status Over Transparency Issues

63 reports, 11 independent, last reported Sun 00:00. The briefing below covers this first event.

AI-generated briefing. Brind wrote this from the reports listed below and has updated it as the story developed. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Well supportedReported by 10 independent outlets

MSCI has been reviewing the investability criteria for Indonesia's stock market, citing concerns about opaque shareholding structures and suspected coordinated trading. The global index provider announced it was considering removing Indonesia from its Emerging Market classification and placing it in the Standalone Market category. Following this warning, the Jakarta Composite Index experienced a sharp decline. Bank Indonesia Governor Destry Damayanti characterized the warning as a short-term shock.

From kontan.co.id, thediplomat.com, econotimes.com

Why it matters

Some supportBrind's analysis of the reports

MSCI's concerns relate directly to the credibility and functioning of Indonesia's capital markets. The provider stated that the issue was a market issue, not merely an index issue. The review follows earlier warnings from MSCI regarding a potential demotion of Indonesia from Emerging Market to Frontier Market status.

From thediplomat.com, econotimes.com

Who's involved

  • MSCIAmerican financial service provider formally assessing Indonesia's equity market status.
  • IndonesiaThe island country whose stock market classification is under review.
  • Bank IndonesiaThe central bank of Indonesia, which commented on the market turmoil.

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • Bank IndonesiaSpeculative

    MSCI's index changes could impact Bank Indonesia's stability mandate and capital flows.

Possible ripples

Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.

How it developed

Newest first. Tap a step to see who reported it.
  1. MSCI warns of downgrade due to opaque ownership; FSA reforms and BI stabilize rupiah.1 source
  2. MSCI is considering removing Indonesia from its indexes following a severe stock market collapse.Sub-event
  3. MSCI's index provider actions are creating complications for Indonesia's central bank.1 source
  4. Rosan Roeslani advises on the Indonesian market as MSCI reviews its status.1 source
  5. MSCI is reviewing Indonesia's market status and questioning its current classification.1 source
  6. MSCI proposed downgrading Indonesia's market classification amid economic outlook discussions.1 source
  7. Standard Chartered provided market analysis, referencing Korea, Pakistan, and Indonesia's MSCI downgrade risk.Sub-event
  8. The Indonesia Stock Exchange (IDX) holds routine technical meetings with MSCI regarding the review of market criteria for Indonesia.Sub-event
Show 3 earlier steps
  1. MSCI determines Indonesia's market status.1 source
  2. MSCI downgraded information flow criteria for Indonesia, which influences the perception of the Philippine market.Sub-event
  3. MSCI reviewed investability criteria for Indonesian markets.1 source

Keep exploring

The entities involved

Related events

Coverage

Newest first; wire copies grouped
41 more outlets ran the same wire story