Indonesia Risks $13 Billion Outflows as MSCI Weighs Frontier-Market Downgrade
Updated
Updated · Bloomberg · Jun 15
Indonesia Risks $13 Billion Outflows as MSCI Weighs Frontier-Market Downgrade
3 articles · Updated · Bloomberg · Jun 15
Summary
$13 billion could leave Indonesian assets if MSCI reclassifies the country from emerging to frontier market status in a decision due this month.
That threat is already weighing on sentiment in the world’s worst-performing equity market, where investors are questioning Indonesia’s resilience.
The Jakarta Composite Index has dropped nearly 31% this year on downgrade fears and concerns over economic management under President Prabowo Subianto.
An MSCI downgrade would add pressure to Indonesian markets by potentially forcing global funds tied to emerging-market benchmarks to pull money out.