The Indonesia Stock Exchange warned investors to keep a long‑term view after MSCI signaled it may reclassify the Indonesian market, prompting a sudden sell‑off that saw the benchmark index tumble around 8‑10 percent. MSCI’s concerns centre on opaque ownership, concentrated shareholdings and suspected coordinated trading, which it says harm investability. The downgrade threat also pressured the rupiah, pushing it past the Rp 18,000 per dollar mark. While officials stress that not all MSCI actions are harmful and that the market remains attractive, the episode underscores heightened volatility and the need for clearer governance to sustain foreign fund inflows. Watch for any official response from the IDX, OJK and the Ministry of Economy on reforms and possible policy measures to reassure investors. [[1, 2, 3]]
