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Indonesia Awaits MSCI Verdict That Risks $13 Billion Outflows

Indonesia Awaits MSCI Verdict That Risks $13 Billion Outflows
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Indonesia Awaits MSCI Verdict That Risks $13 Billion Outflows Indonesia faces a crucial test this month when MSCI Inc. decides whether to follow through with a downgrade, with investors already questioning the resilience of the world’s worst-performing equity market. Should the index compiler reclassify Indonesia as a frontier market, instead of emerging, some analysts say global funds could withdraw as much as $13 billion in outflows. It would also further pressure the benchmark Jakarta...

Indonesia Awaits MSCI Verdict That Risks $13 Billion Outflows Indonesia faces a crucial test this month when MSCI Inc. decides whether to follow through with a downgrade, with investors already questioning the resilience of the world’s worst-performing equity market. Should the index compiler reclassify Indonesia as a frontier market, instead of emerging, some analysts say global funds could withdraw as much as $13 billion in outflows. It would also further pressure the benchmark Jakarta Composite Index, which has fallen nearly 31% this year on worries about the decision coupled with concerns over economic management under President Prabowo Subianto.
Indonesia (LOCATION) MSCI Inc. (ORG) Jakarta (LOCATION) Prabowo Subianto (PERSON)
Originally published by Bloomberg Markets Read original →