The index provider said the downgrade reflected opacity in ownership data and market activity, which undermines proper price formation and constrains global investors' ability to assess the true free float of listed companies.

MSCI warned it may downgrade Indonesia from emerging to frontier market status, erasing $80 billion in market cap and risking up to $60 billion in outflows.

MSCI tetap mempertahankan Indonesia dalam kelompok Emerging Market.

MSCI masih menetapkan pasar modal Indonesia masuk kategori emerging market

By Amanda Lee and Ying Xian Wong