As public sentiment sours, Indonesia awaits MSCI verdict which risks $13 billion in capital outflows

MSCI will decide on June 23 whether to downgrade Indonesia to a frontier market, risking $13 billion in capital outflows. The potential downgrade follows concerns about ownership data opacity and market activity, contributing to a 28% decline in the Jakarta Composite Index in 2026. Investor concerns include policies under President Prabowo Subianto, such as fiscal strain and increased state economic control.