Politics
Indonesia Awaits MSCI Verdict That Risks $13 Billion Outflows
Key Points
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.