When MSCI Pressures Indonesia, Prabowo Asserts Fearlessness

JAKARTA, KOMPAS.com - President Prabowo Subianto delivered a firm message amid scrutiny from Morgan Stanley Capital International (MSCI) regarding Indonesia's capital market.

Prabowo asserted that Indonesia is undeterred, even as it faces intimidation from the American index provider.

This statement was made by Prabowo before his cabinet during a plenary cabinet meeting commemorating the second anniversary of his administration with Gibran at the Presidential Palace in Jakarta on Wednesday (21/10/2026).

"We still face many challenges, there are still many disturbances, and we continue to be obstructed. What is going on? All sorts of things. MSCI, and the like. They want to intimidate us. I can only say to MSCI, the Indonesian nation fears no one and will not flinch," Prabowo said, met with applause on Wednesday.

According to Prabowo, Indonesia possesses strength, courage, and an indomitable spirit.

"Dear colleagues, we fear nothing. We have strength, we have courage, and we are willing to sacrifice, and we do not know how to give up," he stated.

If necessary, he confirmed that Indonesia will undertake massive austerity measures.

"If necessary, we will implement significant austerity measures. We will be even more frugal later on," Prabowo added.

MSCI Scrutiny

Recently, MSCI announced it would conduct an official consultation to determine whether Indonesia's status as an emerging market would be downgraded to a stand-alone market.

MSCI cited several structural issues as reasons for this consultation, including a lack of transparency in ownership structures, overly 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 11.6 percent on Friday (16/10/2026).

This decline erased approximately 85 billion USD, or about IDR 1,528 trillion, from market capitalization.

On Monday (19/10/2026), the IHSG fell another 3.64 percent, closing at 4,996.00, the lowest level in six years.