Indonesia main stock index falls after MSCI warns of downgrade
Business
Indonesia's main stock index fell 2.7% on Thursday morning, snapping its brief recovery.
Investors are worried after MSCI, a major global index provider, warned it might downgrade Indonesia's market status due to concerns about transparency and suspicious trading activity.
Prabowo Subianto defiant, Indonesia tightens markets
President Prabowo Subianto isn't backing down; he says the country won't be pushed around by MSCI.
The government has rolled out new penalties for market manipulation and has pledged to remove closely held companies from the benchmark gage to address the concerns.
Still, experts like Barclays's Kaanhari Singh warn that without real reforms, Indonesian assets could lose more value.