(Jan 28): Indonesian stocks tumbled after MSCI Inc raised concerns about their investability and warned of a potential downgrade to frontier-market status. If Indonesia fails to make sufficient progress on transparency by May, MSCI will reassess the country’s market accessibility — a move that could reduce the weighting for Indonesian companies in the MSCI Emerging Markets Index and potentially trigger a downgrade to frontier-market status. The decision follows MSCI’s proposal to tighten the definition of free float — the number of shares available for trading and a key determinant of a stock’s weighting in benchmarks — for Indonesian securities. Global investors sold a net US$192 million (RM753.31 million) worth of local stocks in the week ended Jan 23, marking their first outflow in 16 weeks. Markets were rattled earlier by the dismissal of long-serving Finance Minister Sri Mulyani Indrawati last year and Prabowo’s growing sway over the central bank.

Source: The Edge Markets January 28, 2026 03:09 UTC