Economic Minister: There are Ripples Like MSCI, but They Are Not Disruptive

JAKARTA, KOMPAS.com - Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the issues raised by the American stock market index provider, Morgan Stanley Capital International (MSCI), are merely ripples that do not disturb the overall Indonesian economy.

Airlangga emphasized that there are still many other rating agencies able to assess Indonesia's economy.

"Indeed, as discussed recently, there are ripples like those from MSCI. However, that is not something that disturbs the overall context. Many other rating agencies can also evaluate our economy," said Airlangga at the Presidential Palace in Jakarta on Wednesday night (21/10/2026).

He pointed out that Indonesia remains capable of ensuring cooperation and broadening market access, even amid a world full of challenges.

Therefore, Airlangga stated that all stakeholders, including the private sector, must work together in this uncertain situation.

"The geopolitical situation will not change entering next year. But for this year, oil prices are still relatively around 91 to 92, and it is expected to average around 95 by the end. From the perspective of our state budget (APBN), we can absorb this," he explained.

Regarding the impact of President Prabowo Subianto's statement that he is not afraid of MSCI, Airlangga assured that the government will continue to work to calm the market.

He pointed out that the Jakarta Composite Index (IHSG) has remained positive over the past Tuesday and Wednesday.

"Yes, we are calming the market, and today we can see it is in the green zone," added Airlangga.

Previously, the Indonesia Stock Exchange (BEI) planned to seek clarification from MSCI regarding its option to downgrade Indonesia's stock market classification from Emerging Market to Standalone Market.

BEI President Director Jeffrey Hendrik mentioned that they, along with the Financial Services Authority (OJK), have taken various concrete steps to enhance transparency, integrity, and the quality of Indonesia's capital market.

These improvement measures, according to Jeffrey, have received appreciation and positive responses from global investors and international index providers.

This reflects the ongoing commitment of the stock exchange authorities and all stakeholders to strengthen the credibility and competitiveness of Indonesia's capital market.

Nevertheless, the BEI will seek further explanation from MSCI regarding the underlying considerations and assessments that led to the option to downgrade the national capital market status.

"Considering the various advancements and reform steps taken, the BEI will ask for further clarification from MSCI regarding the basis for the considerations and assessments that led to the announcement," Jeffrey stated in a press release on Friday (16/10/2026).

He stressed that the announcement from MSCI on October 15, 2026, is still part of a consultation process and not a final decision.

The deadline for receiving inputs in this consultation process is set until April 30, 2027.

In the future, the BEI will continue to coordinate with the OJK and all stakeholders to ensure that the trading of securities in Indonesia's capital market proceeds in an orderly, fair, and efficient manner.

"Going forward, the BEI will work closely with the OJK and all stakeholders to ensure trading in Indonesia's capital market is always conducted in an orderly, fair, and efficient manner, while maintaining the confidence of both domestic and global investors," he elaborated.