MSCI Inc. (Morgan Stanley Capital International) has downgraded Indonesia's "information flow" rating to "negative" and reiterated that limited holding transparency and coordinated trading are key risks for the Indonesian stock market.
According to a Reuters report, MSCI made the adjustment on Thursday (June 18) in its 2026 Global Market Accessibility Review.
Earlier this year at the end of January, the institution had already questioned the governance and transparency of the Indonesian stock market, and warned that Indonesia could face a downgrade from "emerging market" to "frontier market" status.
MSCI’s latest assessment points out that the downgrade of the information flow rating to "negative" may trigger up to US$13 billion (about S$16.7 billion) in capital outflow pressure.
Data shows that since the start of this year, Jakarta’s benchmark stock index has fallen by more than 27%, making it one of the world’s worst-performing major stock markets; as of 2026 so far, foreign investors have sold about US$3.76 billion worth of Indonesian stocks.
In addition, international credit rating agency Moody's also downgraded Indonesia's rating outlook to negative in early February.
MSCI Inc. (Morgan Stanley Capital International), also known as MSCI, is a global index provider headquartered in the United States.
Earlier this year at the end of January, the institution had already questioned the governance and transparency of the Indonesian stock market, and warned that Indonesia could face a downgrade from "emerging market" to "frontier market" status.
MSCI’s latest assessment points out that the downgrade of the information flow rating to "negative" may trigger up to US$13 billion (about S$16.7 billion) in capital outflow pressure.
Data shows that since the start of this year, Jakarta’s benchmark stock index has fallen by more than 27%, making it one of the world’s worst-performing major stock markets; as of 2026 so far, foreign investors have sold about US$3.76 billion worth of Indonesian stocks.
In addition, international credit rating agency Moody's also downgraded Indonesia's rating outlook to negative in early February.
MSCI Inc. (Morgan Stanley Capital International), also known as MSCI, is a global index provider headquartered in the United States.