Capital Market Challenges Following MSCI and Moody's Evaluation of National Investment Stability

Does the MSCI and Moody’s evaluation represent a serious threat to Indonesian investment, or is it rather an impetus for national economic reform?

How significant are the government’s prospects of restoring global investor confidence amid international economic pressures?

Paramadina University Discusses Strategy to Restore Indonesia’s Global Investor Confidence

Paramadina University held an online discussion on Tuesday, 18 February 2026, titled “Indonesia’s Capital Market Prospects and Direction Following MSCI and Moody’s Assessment” to address strategies for maintaining national investment stability.

Paramadina University Rector, Prof. Didik J. Rachbini, assessed that the capital market holds a strategic position as the primary gateway for global financing into the national real sector.

“The capital market is a great dam irrigating business and serves as a direct connection between domestic economy and the global financial system,” said Prof. Didik J. Rachbini.

Investment Outflow Data Presents Serious Challenge to National Economic Stability

Economist from Paramadina University, Wijayanto Samirin, presented data indicating that Indonesia’s portfolio investment flows faced significant pressure with negative values of approximately USD 14 billion between 2025 and Q3 2026.

This phenomenon is rarely seen and reflects heightened caution among global investors regarding policy risks and domestic economic governance.

The decline in Moody’s outlook has underscored economic governance risks, fiscal stability, and policy certainty—factors deemed crucial for sustaining national investment.

Structural capital market reforms have been focused on transparency, law enforcement, and strengthening synergy between the government, the Financial Services Authority (OJK), and capital market management institutions.