President Prabowo Subianto has responded to a warning from global\nstock index provider Morgan Stanley Capital International (MSCI)\nconcerning Indonesia, saying he is not afraid of the threat.<\/p>\n
As reported by detikcom on Thursday (22 October 2026), Prabowo was\nresponding to MSCI\u2019s proposal to downgrade Indonesia from\nemerging-market to standalone-market status. If implemented, the move\ncould cause Indonesia\u2019s capital market to lose substantial foreign\ninvestment inflows.<\/p>\n
Reuters reported that foreign investors began selling shares,\ntriggering capital outflows, on Friday (16 October), shortly after MSCI\nproposed the downgrade. The Jakarta Composite Index (IHSG) fell by as\nmuch as 11.6% that day.<\/p>\n
The IHSG weakened again in trading on Monday (19 October), closing\ndown 3.6%. The combined decline over the two trading days was steeper\nthan any fall during the 1998 Asian financial crisis. The benchmark also\nhit a six-year low during the session.<\/p>\n
In a separate Reuters report, several banks estimated that an MSCI\ndowngrade could trigger passive outflows of US$3\u20136 billion, or Rp54\u2013108\ntrillion.<\/p>\n
Banking giant JPMorgan put potential passive outflows at US$4.8\nbillion, or Rp86.4 trillion, while UBS warned that active investors\ncould withdraw a further US$15 billion, or Rp270 trillion.<\/p>\n
Prabowo says Indonesia is not afraid<\/strong><\/p>\n Prabowo addressed the warning during a cabinet meeting marking the\nsecond anniversary of his administration. He said MSCI\u2019s announcement\nwas intended to frighten Indonesia.<\/p>\n \u201cWe continue to face obstacles. There\u2019s this and that \u2014 MSCI, all\nsorts of things,\u201d Prabowo said in his briefing at the meeting, held at\nthe Presidential Palace in Jakarta on Wednesday (21 October).<\/p>\n Speaking to his ministers, Prabowo said Indonesia was not afraid of\nMSCI\u2019s announcement and described the country as one that does not give\nup easily.<\/p>\n \u201cThey want to frighten us. I will simply say to MSCI: the Indonesian\nnation fears no one and will not be intimidated,\u201d Prabowo said.<\/p>\n \u201cLadies and gentlemen, we are not afraid. We have strength, we have\ncourage, and we are willing to make sacrifices; we do not know the\nmeaning of surrender,\u201d he added.<\/p>\n Economic Affairs Minister says MSCI will not directly affect\nSEZ investment<\/strong><\/p>\n Earlier, Coordinating Minister for Economic Affairs Airlangga\nHartarto said sentiment following MSCI\u2019s announcement would not directly\naffect investment in special economic zones (SEZs). He said MSCI\u2019s\nconcerns related only to governance in the capital market.<\/p>\n \u201cMSCI has no connection with SEZs, because it relates only to\ngovernance in the capital market,\u201d Airlangga said at the AA Maramis\nBuilding in Central Jakarta on Wednesday (21 October), as quoted by\ndetikFinance.<\/p>\n Investment realised in SEZs reached Rp46 trillion from January to\nSeptember 2026, equivalent to 67% of the 2026 target of Rp69.1 trillion.\nAirlangga remained optimistic that the target could be reached by the\nend of the year.<\/p>\n \u201cSEZs are at 67% through the third quarter. We hope to reach 100% in\nthe fourth quarter, as all the projects are currently under\nconstruction,\u201d he added.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/prabowo-tells-msci-indonesia-is-not-afraid-1792633940",
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