ASEAN Beat | Economy | Southeast Asia

Prabowo Accuses MSCI of Attempting to ‘Intimidate’ Indonesia After Downgrade Threat

“We possess strength, we have courage, we are willing to make sacrifices, and we refuse to surrender,” said the former general.

Indonesian President Prabowo Subianto takes part in an event marking the 81st anniversary of the founding of the Indonesian National Armed Forces (TNI) at their headquarters in Cilangkap, East Jakarta, Indonesia, Oct. 5, 2026.

Indonesian President Prabowo Subianto has accused MSCI of attempting to “intimidate” Indonesia, after the global index provider threatened to downgrade the country due to serious stock market transparency issues.

In a statement on October 16, MSCI announced that it had launched “a consultation on a proposal to reclassify the MSCI Indonesia Indexes from Emerging Market to Standalone Market status.” Among its concerns are coordinated trading practices, the high concentration of ownership in certain companies, and the limited “free float” of shares – i.e., those openly available for public trading.

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