Story perspectives

MSCI Threatens Indonesia Downgrade as Outflows Could Reach $5.6B

By Drooid · Oct 23, 2026, 3:20 PM UTC · How we work

Summary

Story summary

MSCI warned it may downgrade Indonesia from emerging-market to standalone status over shareholding opacity.
President Prabowo Subianto told a cabinet meeting Indonesia will not be intimidated by MSCI.
Indonesia Stock Exchange will change the index criteria on Nov. 2, dropping high-concentration firms.
Bank Mandiri allocated 1.17 trillion rupiah and Bank Negara Indonesia 627 billion rupiah for buybacks.
Goldman Sachs estimates a full MSCI removal could cause up to US$5.6 billion in outflows.

History

Historical Context

MSCI, whose indices benchmark over $16.5 trillion, shapes global fund flows through country classifications. While FTSE Russell and S&P list South Korea as developed, MSCI has long kept it in the emerging group, a status it periodically reviews. The firm’s 2013 acquisition of Investor Force underscored its expanding influence, illustrating how reclassifications can redirect large capital.

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Story summary

MSCI warned it may downgrade Indonesia from emerging-market to standalone status over shareholding opacity.
President Prabowo Subianto told a cabinet meeting Indonesia will not be intimidated by MSCI.
Indonesia Stock Exchange will change the index criteria on Nov. 2, dropping high-concentration firms.
Bank Mandiri allocated 1.17 trillion rupiah and Bank Negara Indonesia 627 billion rupiah for buybacks.
Goldman Sachs estimates a full MSCI removal could cause up to US$5.6 billion in outflows.

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