economy
MSCI isn't done with Indonesia yet: new report signals continued concerns over market transparency
MSCI flagged growing concerns about transparency in Indonesia's stock market.
TL;DR
- MSCI has warned of continued transparency issues in Indonesia's market.
- Opaque shareholding structures and coordinated trading activity are key concerns.
- These issues impede international investors' ability to assess free floats and trust market prices.
- MSCI downgraded Indonesia's Information Flow assessment in its annual Global Market Accessibility Review.
- Concerns are amplified by the rupiah's record low, questions about fiscal health, capital outflows, and a surprise rate hike by Bank Indonesia.
- The Jakarta Composite Index has lost almost 30% year-to-date.