Story perspectives

Prabowo Rejects MSCI Threat After $82B Stock Rout

By Drooid · Oct 21, 2026, 10:38 PM UTC · How we work

Summary

Story summary

President Prabowo Subianto told his cabinet Indonesia will not be intimidated by MSCI.
MSCI announced on Oct 15 it may reclassify Indonesia from emerging-market to standalone status.
The proposal triggered a two-day sell-off that erased about US$82 billion in Indonesian stock value.
Prabowo called deliberate land burning environmental terrorism and vowed to revoke offending companies' permits.
Singapore Minister Grace Fu said investigations linked seven Indonesian companies to the haze on Oct 16.

History

Historical Context

During the 1997 Asian financial crisis, the IMF launched a $40 billion rescue program for Indonesia, South Korea and Thailand after the Thai baht collapsed on 2 July, triggering capital flight and a sharp devaluation of the rupiah. The crisis forced Suharto to resign on 21 May 1998, reshaping Indonesia’s regulatory environment. Today, MSCI’s 2024 reclassification proposal tests that same vulnerability under President Prabowo’s administration.

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Story summary

President Prabowo Subianto told his cabinet Indonesia will not be intimidated by MSCI.
MSCI announced on Oct 15 it may reclassify Indonesia from emerging-market to standalone status.
The proposal triggered a two-day sell-off that erased about US$82 billion in Indonesian stock value.
Prabowo called deliberate land burning environmental terrorism and vowed to revoke offending companies' permits.
Singapore Minister Grace Fu said investigations linked seven Indonesian companies to the haze on Oct 16.

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