MSCI Cuts Indonesia Information Flow Rating to Negative as $13 Billion Downgrade Risk Looms
Updated
Updated · Reuters · Jun 18
MSCI Cuts Indonesia Information Flow Rating to Negative as $13 Billion Downgrade Risk Looms
3 articles · Updated · Reuters · Jun 18
Summary
MSCI lowered Indonesia's information-flow criterion to negative, saying opaque shareholdings and coordinated trading are undermining price formation and investors' ability to judge companies' true free float.
The warning lands days before MSCI decides whether to cut Indonesia to frontier-market status from emerging, a move that could trigger as much as $13 billion of outflows from index-tracking and benchmarked funds.
Indonesia's market has already been hit by the review: the Jakarta benchmark is down 29% in 2026, foreign investors have sold about $3.65 billion of stocks, and MSCI in May removed six companies from its indexes.
The scrutiny extends beyond equities, with MSCI also citing inefficient offshore FX trading and onshore constraints as broader concerns over investability in a $1.4 trillion economy already facing negative outlooks from Moody's and Fitch.