MSCI May Downgrade Indonesia’s Status; Foreign Ministry Prepares Its Response

Jakarta, CNBC Indonesia — Widespread discussion of the MSCI index and negative sentiment towards Indonesia, including in relation to Singapore, have drawn serious attention from the government. The Foreign Ministry (Kemlu) is responding to these developments by stepping up its economic diplomacy strategy to safeguard the country’s investment climate.

In a Foreign Ministry press statement on Thursday (22 October 2026), ministry spokesman Vahd Nabyl Mulachela said it was prioritising the provision of comprehensive and clear information about the national business climate.

Vahd said the ministry was actively making the most of Indonesia’s overseas missions. All of them had been specifically tasked with consistently carrying out what is known as economic diplomacy.

The main focus of this diplomacy is to provide the clearest possible information about the country’s economic fundamentals. This is crucial to maintaining and increasing foreign investment interest.

“These efforts also include facilitating dialogue between businesses and investors overseas and those in Indonesia, so they can obtain the clearest possible information,” he said.

The Foreign Ministry said it was not acting alone in this broader economic diplomacy effort. It was working closely with other relevant government agencies and institutions.

This cross-sector collaboration is considered essential to presenting a comprehensive picture of the macroeconomy. The aim is to ensure that a complete account of Indonesia’s conditions is conveyed, without the narrative being fragmented.

The ministry hopes accurate information will counter negative perceptions and doubts that may arise among global investors, thereby helping to maintain their confidence in Indonesia’s investment climate.

“The Foreign Ministry’s role in this [economic diplomacy] continues to be carried out,” Vahd said.