Video: Securities CEO Reveals Effects of MSCI Policy on Indonesian Stock Exchange

Sucor Sekuritas CEO Bernadus Wijaya has outlined several sentiments currently concerning investors in the Indonesian financial market. From an external perspective, these include developments in the Middle East conflict, oil price movements and their impact on the Rupiah exchange rate, as well as Bank Indonesia’s monetary policy which saw the benchmark interest rate raised by 100 basis points in the past month. Domestically, MSCI’s announcement that it will maintain Indonesia’s Emerging Market status but continue its evaluation due to unresolved investor disclosure data has prompted a wait-and-see approach among investors. Despite this, Bernadus assesses the potential for Indonesia to be downgraded to Frontier Market status as very low, below 10%, given the country’s substantial market capitalisation and daily trading volume. He emphasised that the Indonesia Stock Exchange and the Financial Services Authority (OJK) must continue bourse reforms to comply with MSCI policies and attract foreign investors.