Indonesia criticizes potential index exclusion as a harsh penalty

Indonesia warns that an MSCI index downgrade threat is excessive and carries serious consequences.

An adviser to Indonesia's president has criticized a potential downgrade threat by index provider MSCI as excessive. The warning follows prior regulatory changes aimed at addressing market transparency concerns. Authorities warn that an expulsion from major global indices would trigger severe economic consequences.

• The reactionA prominent presidential adviser warned that an exclusion from global indices carried severe economic risks.
• The backgroundAuthorities previously introduced new disclosure rules to prevent a threatened reclassification to a standalone market.