Prabowo to MSCI: Indonesia Is Not Afraid of Anyone!

JAKARTA, KOMPAS.com - Indonesian President Prabowo Subianto stated that Indonesia is being intimidated by the U.S.-based market index provider, Morgan Stanley Capital International (MSCI).

Prabowo emphasized to MSCI that Indonesia is not frightened by anyone.

This was expressed by Prabowo during a Plenary Cabinet Meeting commemorating the Prabowo-Gibran administration's year at the Presidential Palace in Jakarta on Wednesday (21/10/2026).

"We are facing many difficulties, there are many disturbances, we continue to be obstructed, what's going on? Various things. MSCI, among others. They want to intimidate us. I just want to say to MSCI, the Indonesian nation fears no one, and we will not be daunted," Prabowo remarked, to applause.

He continued that the government will not be afraid, as Indonesia knows no surrender.

"My fellow citizens, we are not afraid. We have strength, we have courage, we are willing to sacrifice, and we do not know the meaning of surrender," he stated.

Meanwhile, Prabowo revealed that the government will implement another round of massive austerity measures.

"If necessary, we will carry out massive austerity. We will be even more frugal," Prabowo added.

Indonesia Faces Status Downgrade

MSCI announced that it will conduct a formal consultation to determine whether Indonesia's status as an emerging market will be downgraded to a stand-alone market.

MSCI cited several structural issues as reasons for the consultation, including a lack of transparency in ownership structures, excessively concentrated share ownership, and coordinated trading practices. This announcement was followed by a sharp decline in Indonesia's stock market.

The Composite Stock Price Index (IHSG) plummeted by 11.6 percent on Friday (16/10/2026).

This decline erased approximately $85 billion or around Rp 1.528 trillion in market capitalization.

On Monday (19/10/2026), the IHSG dropped again by 3.64 percent, closing at 4,996.00, marking the lowest level in six years.