House Commission XI Urges Caution in Interpreting Prabowo’s Remarks on MSCI
House Commission XI chairman Misbakhun said President Prabowo Subianto’s statement that he was not intimidated by global index provider Morgan Stanley Capital International (MSCI) should not be interpreted in isolation.
“Do not interpret it as a direct confrontation. This is intended to provide encouragement: there is pressure, yes, and a difficult situation, yes. But difficult and pressured situations must be handled more carefully,” Misbakhun said at the Golkar Party’s central executive board office in Jakarta on Sunday (25 October).
Misbakhun said Prabowo’s remarks about MSCI were intended to reinforce the message that Indonesia’s economy is built on the strength of its own people. He said the statement was also expected to prevent Indonesians from becoming overly concerned about the situation.
“And, of course, what is this meant to do? To send a clear and strong message to MSCI and the global community, including global investors, that Indonesia is following international stock-market governance protocols. The Indonesia Stock Exchange has made serious and earnest efforts, and its representatives have met with MSCI several times,” he said.
Misbakhun said Indonesia had a highly agile economy. “Beyond the capital market, we have sectors relating to food security and energy security, as well as economic flexibility. We have very good resilience,” he said.
He said Commission XI was closely monitoring the situation in Indonesia’s capital market and regularly held meetings to track the market-reform process.
“Capital-market dynamics are always volatile. But we also want to remind the public that the current situation is not determined solely by domestic economic conditions. Geopolitical pressures are also fluctuating, creating uncertainty,” he said.
At a plenary Cabinet meeting on Wednesday (21 October), Prabowo sent an open message to MSCI amid the prospect of Indonesia’s capital-market status being downgraded. He said Indonesia would not be intimidated by pressure, while acknowledging that it still faced major challenges and disruptions.
“MSCI wants to scare us. I say only this to MSCI: the Indonesian nation fears no one and will not be intimidated,” Prabowo said.
He said the Government recognised that many challenges remained, while the public expected greater results. Disruptions would continue to arise, he said, but Indonesia had to face them bravely.
Prabowo made the remarks after MSCI announced on 16 October 2026 that it was proposing to reclassify Indonesia’s stock market from emerging-market to standalone-market status. A final decision is due by 30 June 2027 at the latest.
MSCI said the proposal was based on market participants’ concerns about transparency in share-ownership structures and alleged coordinated trading practices. It also said reforms announced by Indonesian authorities had yet to demonstrate consistent and significant progress.