{
    "success": true,
    "data": {
        "id": 1815276,
        "msgid": "msci-downgrade-unlikely-to-trigger-panic-ihsg-expected-to-remain-stable-1782049813",
        "date": "2026-06-21 19:32:00",
        "title": "MSCI Downgrade Unlikely to Trigger Panic, IHSG Expected to Remain Stable",
        "author": "Irvan Sihombing",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Finance",
        "summary": "The recent downgrade in Indonesia's market accessibility criteria by MSCI is not expected to cause significant turmoil in the domestic stock market. Analysts suggest the negative sentiment has already been priced in, as reflected by the IHSG's resilient performance. Attention now shifts to MSCI's annual classification review, which will confirm whether Indonesia retains its Emerging Market status.",
        "content": "<p>The decline in Morgan Stanley Capital International\u2019s (MSCI)\nassessment of Indonesia\u2019s capital market accessibility criteria on\nThursday (18\/6) is predicted not to trigger massive panic in the\ndomestic market. The market\u2019s relatively calm reaction is seen as an\nindication that the negative sentiment has been anticipated by market\nparticipants.<\/p>\n<p>Researcher from the Center of Reform on Economics (CoRE) Indonesia,\nYusuf Rendy Manilet, stated that trading activity has so far shown\nresilience. This is reflected in the movement of the Composite Stock\nPrice Index (IHSG) at the end of last week, which managed to stay in\npositive territory.<\/p>\n<p>According to Yusuf, despite moving with some volatility following the\nMSCI announcement, the IHSG actually closed slightly higher on 19 June.\nThis indicates that the information regarding the criteria downgrade has\nalready been priced into current stock prices.<\/p>\n<p>\u201cThe market reaction at that time did not show panic. It indicates\nthat the negative sentiment from the decision has largely been\ndiscounted into prices,\u201d Yusuf said when contacted on Sunday (21\/6).<\/p>\n<p>Looking ahead to the market opening on Monday (22\/6), Yusuf projects\nthat any pressure will be relatively limited. Investors have had the\nweekend to digest the information, so the potential for a massive\nsell-off due to this accessibility issue is minimal.<\/p>\n<p>Yusuf emphasised that a downgrade in one accessibility criterion does\nnot immediately alter Indonesia\u2019s status in the global investment\nlandscape. Currently, Indonesia remains firmly in the Emerging Market\ngroup. The scheduled annual classification announcement in the middle of\nthe week (24\/6 local time) will be a more significant catalyst for\nglobal investors.<\/p>\n<p>\u201cI see this development more as a signal that Indonesia has\nsuccessfully avoided the risk of a status downgrade for now, rather than\nas a new positive catalyst for the market,\u201d he added. MSCI\u2019s focus is\nmore on institutional aspects rather than macroeconomic fundamentals,\nwhich are still considered stable.<\/p>\n<p>Although the MSCI issue has not triggered panic, the Indonesian stock\nmarket still faces considerable structural challenges. Year-to-date, the\nIHSG has recorded a fairly deep correction, accompanied by a trend of\nforeign capital outflows. Current market conditions are largely\nsupported by domestic investor activity. Yusuf believes trading at the\nstart of the week will likely move in a wait-and-see mode while market\nparticipants observe the full evaluation results from MSCI due\nmid-week.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/msci-downgrade-unlikely-to-trigger-panic-ihsg-expected-to-remain-stable-1782049813",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}