Indonesia Sees Opportunity in MSCI Transparency Warning

Indonesia's Finance Minister Purbaya Yudhi Sadewa has expressed optimism despite a recent warning from MSCI regarding corporate transparency that led to a sharp decline in local stock markets. According to Jin10, Purbaya stated in Jakarta on Tuesday that MSCI's warning represents an opportunity for Indonesia's fundamentally strong economy. He noted that last week's market downturn was driven by anxiety rather than a collapse, joking that market sentiment would improve once investors recognize his leadership. Purbaya emphasized that enhancing transparency could address market issues and ultimately improve the country's economic situation. MSCI warned last week that if necessary reforms are not implemented by May, longstanding concerns about investment viability could result in Indonesia being downgraded to a "frontier market." This warning triggered a significant sell-off, wiping out billions of dollars in market value, causing trading interruptions, and prompting substantial foreign capital outflows.