Report
Political maneuvering hinders Indonesia’s market reforms amid MSCI downgrade threat
Indonesia’s authorities are pursuing reforms to restore investor confidence, but opaque transactions still worry market participants.
TLDR
MSCI warned early in 2026 that it might downgrade Indonesia’s stock market. In October, it announced a consultation proposing to reclassify Indonesia as a standalone market. Authorities have pursued reforms to restore investor confidence, but political maneuvering and opaque transactions remain concerns. Brokers reportedly engineered trades that enriched Indonesian tycoons, while shares in one delicacy maker rallied 5,000% over roughly seven weeks.
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