MSCI

THE BOTTOM LINE

The death of the Trump trade

Investor backlash against US markets appears to be real

Indonesia’s trust evolved under different historical and political conditions. Where institutions have been inconsistent and laws fluid, trust has naturally migrated into families, networks and personal relationships.

Trust is not branding: What Indonesia’s recent market turbulence really reveals

In a global financial system that prizes transparency, data reliability and predictability, institutional credibility matters

Luke Flemmer, head of private assets at MSCI, says benchmarking is "really critical" to the private assets market's maturation.

Benchmarks necessary as private market assets seek retail participation: MSCI private assets chief

Financial advisers must be equipped to ensure products added to clients’ portfolios are suitable for diversification and liquidity

The Indonesia Stock Exchange estimates that 267 firms need to lift their public shareholdings to 15%, up from the current 7.5% minimum, implying share sales worth about 187 trillion rupiah (S$14 billion), according to listing director I Gede Nyoman Yetna. 

Indonesia faces record share sales to meet free-float goal

The push is aimed at heading off a potential downgrade to frontier market status by MSCI

Regulators are now scrambling to restore credibility, boost liquidity and reassure global investors that the market remains accessible.

Indonesia sees US$11 billion in share sales for free-float aim

Indonesian authorities have pledged to satisfy MSCI’s concerns by March

“The damage to investor confidence is reversible. But a failure to do so would deal a more serious blow to investor confidence than an MSCI reclassification,” S&P analysts said in a report.

S&P says reviving investor confidence is key for Indonesia’s sovereign support

S&P noted authorities are addressing problems in the Indonesian stock market

Indonesian President Prabowo Subianto, speaking in Jakarta on Friday, emphasised the importance of adhering to the rule of law and asked ministers to be more active disseminating government policies to stakeholders abroad.

Prabowo fury on market rout shows growing divisions in Indonesia

The president was unaware of the issues flagged by MSCI

Singapore’s role could evolve from hosting regional listings to providing institutional architecture that makes Asean sovereign flows investable under Coins-era compliance requirements.

Beyond the hub: Singapore’s strategic choice in the age of capital geofencing

With index freezes in Jakarta and new investment curbs in Washington, Singapore must evolve into a key node for compliant Asean investment

The Jakarta Composite Index fell as much as 16% over two days after the MSCI warning. It pared some of its losses slightly on Jan 30 before continuing to decline into February.
BT EXPLAINS

From emerging to frontier market: Why MSCI’s potential downgrade hit Indonesia so hard

Analysts have mapped out potential outcomes for Indonesia, ranging from a relief rally to a complete market exit

The benchmark Jakarta Composite Index fell over 4 per cent in early trading on Monday after sliding nearly 7 per cent last week, its steepest drop in a year.

Indonesian stocks fall 5% after last week’s dramatic shake-up, US$80 billion rout

Foreigners have sold around US$736 million worth of shares since Wednesday