MONEY MASTER

Summary Indonesian markets came under renewed pressure after  Moody's  downgraded the country’s  credit rating outlook to negative , amplifying concerns over  policy uncertainty, governance, and capital outflows  following recent market turmoil. What Happened Moody’s cut Indonesia’s outlook to negative from stable , while keeping the  Baa2 rating unchanged The move followed  MSCI ’s warning over transparency issues that had already triggered a  US$80 billion market rout Stocks and currency weakened immediately  in early trade Market Reaction Jakarta Composite Index:   -2%  intraday, extending weekly losses Rupiah:  Fell to  16,880 per US dollar , near recent record lows International bonds:  Longer-dated dollar bonds slipped  0.3–0.5 cents , trading at  five-month lows Key point:  Investors are demanding a  higher risk premium  across Indonesian assets. Why Moody’s Is Concerned Moody’s cited: ...

Quick Summary Indonesia’s stock market suffered its worst two-day selloff in nearly 30 years  after an MSCI downgrade warning Jakarta Composite Index (JCI) plunged up to 10% , triggering circuit breakers Regulators pledged reforms , including higher free-float requirements and possible market support Investor confidence remains fragile , with risks spilling into currency and bond markets What Happened Indonesia’s benchmark  Jakarta Composite Index (JCI)  suffered a historic selloff after  MSCI Inc.  warned it could downgrade the country’s market status. The index: Fell as much as 10% , triggering circuit breakers for a second straight day Marked the  worst two-day rout since the 1998 Asian Financial Crisis Closed  down 1.1%  after a late rebound following regulatory intervention The selloff came just  one week after the market hit a record high . Why Markets Panicked The MSCI warning highlighted: Low free float  among Indonesian listed c...

Based on a statement by  MSCI Inc.  and reporting by Bloomberg , Indonesian equities suffered a sharp sell-off after the index provider warned it would pause key index changes due to  persistent investability and free-float concerns . The benchmark  Jakarta Composite Index  plunged as much as  7% in early trading , marking one of its steepest single-day declines in recent years and reigniting concerns over Indonesia’s market accessibility for global investors. What Triggered the Sell-Off MSCI announced it will: Immediately halt additions  to its indices involving Indonesian stocks Freeze increases in free-float adjustments , citing: Tightly held ownership structures Investor concerns over coordinated price movements Ongoing “fundamental investability issues” More critically, MSCI said Indonesia will be  reassessed by May  if regulators fail to improve transparency — opening the door to: Lower weightings in the MSCI Emerging Markets Index A po...

  Key Takeaways: The  Jakarta Composite Index dropped up to 1.8% , while the  rupiah slid 1% against the USD , the worst performer among emerging peers. Respected former Finance Minister Sri Mulyani Indrawati’s exit  raises investor fears of weaker fiscal discipline under President Prabowo’s administration. Foreign investors sold US$845M in September , amid protests and political uncertainty. New Finance Minister  Purbaya Yudhi Sadewa vows to keep fiscal deficit below 3% of GDP , but credibility remains to be built. Market Reaction: Sharp Selloff Across Assets Indonesian assets tumbled on Tuesday following the removal of long-time Finance Minister Sri Mulyani Indrawati. The Jakarta Composite Index lost as much as 1.8%, led by banking stocks such as Bank Rakyat Indonesia (-2.3%) and Bank Central Asia (-2.3%). Government bonds also sold off, with the  5-year yield climbing 11bps to 5.87%  and the  10-year up 5bps to 6.44% . The rupiah slumped 1% aga...

Key Takeaway:  Indonesia’s markets came under pressure after respected finance minister  Sri Mulyani Indrawati  was removed, fueling investor concerns over policy direction under President  Prabowo Subianto  amid recent political unrest. Market Reaction The  rupiah fell 1.1% to 16,482 per dollar  on Tuesday, while the  Jakarta Composite Index  dropped  1.3% . Sovereign bonds also weakened.  Bank Indonesia (BI)  confirmed it was intervening in the currency and bond markets to stabilise the rupiah. Year-to-date, the rupiah has slid  2.3% , making it Asia’s  worst-performing currency after the Indian rupee . By contrast, the Jakarta Composite is still up  9.1% in 2025 , though it lags other Asian emerging-market peers. Political Shift Indrawati’s removal comes just days after Indonesia experienced its  worst anti-government protests in years , raising fears of more populist fiscal measures. She had been widely ...