Global index provider MSCI has downgraded Indonesia’s information flow criterion to negative in its latest review, raising concerns over the “investability” of the country’s stock market due to limited transparency in shareholding structures and signs of coordinated trading behavior.

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 masih menetapkan pasar modal Indonesia masuk kategori emerging market

By Amanda Lee and Ying Xian Wong