The Governor of Bank Indonesia, Destry Damayanti, said foreign investors who met her had expressed regret over a proposal by Morgan Stanley Capital International to downgrade Indonesia’s stock market classification. She spoke on Thursday 29 October 2026 at the National Leadership Meeting of Kadin Indonesia in Jakarta.
The MSCI proposal triggered capital outflows that pressured the rupiah, which was trading above 18,100 rupiah per US dollar at the time of reporting. Destry said the Financial Services Authority, or OJK, had acted quickly, while Bank Indonesia coordinated with the Financial System Stability Committee, known as KSSK, to reduce the negative impact.
Investors wary of US and Europe
Destry recounted that foreign investors told her they still liked Indonesia, asking where else they might invest given the risks elsewhere. She quoted them as saying the United States stock market was too risky, with its capitalisation now running at 2.4 times GDP.
The investors told her the US market was dominated by technology stocks whose prices kept rising with no known peak, a trend they found worrying. They also pointed to Europe, citing debt problems, high debt ratios and wide budget deficits as further reasons for caution.
Coordination to calm markets
Destry said KSSK had met and that authorities were working together to calm global investors. She said this effort was underway even though it did not show that Indonesia was fundamentally fine.
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The remarks came as policymakers sought to contain the fallout from the MSCI proposal.
Source: Bank Indonesia
