By Ying Xian Wong and Fabiana Negrin Ochoa
Indonesia has held on to its emerging-market status, avoiding being downgraded by index provider MSCI in what will be a welcome decision for a country grappling with a loss of investor confidence.
The move averts what analysts had warned could be a multibillion-dollar outflow of capital from Indonesia.
Worries about transparency and policymaking have hammered Indonesian assets this year, sparking a series of warnings from credit-rating agencies, MSCI and fellow index provider FTSE Russell.
Headwinds stemming from the Iran crisis have made matters worse, hitting the oil-sensitive rupiah and raising fiscal risks as government subsidies swell.
