Sufmi Dasco Ahmad, Deputy Speaker of the House of Representatives (DPR), said Indonesia’s capital market has strong fundamentals and that the country will set its own rating. He made the remarks in an Instagram post on Monday, responding to MSCI’s proposal to downgrade Indonesia’s stock market to Standalone Market status.
Dasco’s statement came amid market turbulence over the proposal, which MSCI put out for consultation on Friday.
What MSCI is proposing
MSCI, formerly Morgan Stanley Capital International, proposed reclassifying Indonesia’s stock market from Emerging Market to Standalone Market. The firm opened a consultation with market participants on the plan.
Under the proposal, Indonesian shares would no longer be part of MSCI’s main global indices, such as the MSCI Emerging Markets Index or the MSCI Frontier Markets Index. MSCI could still compute individual country indices for Indonesia.
MSCI cited concerns over the investability of Indonesian shares. Those concerns include the transparency of share ownership structures and alleged coordinated trading practices. The firm said it may provide interim updates on market feedback during the consultation period. It will announce its final decision no later than June 30, 2027.
Dasco’s response
In his post, Dasco said, “In our exchange, we will create and determine our own rating together.” He also wrote, “We unite, move and fight. Towards a Nation of Winners!”
Source: MSCI
