MSCI Urged Stronger Market Enforcement as Indonesia Faced Potential Downgrade to Standalone Market

MSCI emphasized that Indonesia’s potential downgrade from Emerging Market to Standalone Market status reflects broader market governance concerns rather than index-related issues, citing opaque ownership structures, suspected coordinated trading, and weak regulatory enforcement. During a UBS-hosted investor call, MSCI reportedly stressed that regulatory reforms alone would be insufficient without evidence of sustained enforcement against market manipulation. MSCI also viewed IDX’s plan to exclude around 80 High Shareholding Concentration (HSC) stocks from the JCI as insufficient, with unclear selection criteria. A downgrade could trigger billions of dollars in foreign outflows, following net foreign selling of USD 5.3 bn in 2026. Indonesia has until 30 Apr-27 to demonstrate meaningful improvements, ahead of MSCI’s final decision in Jun-27. (Bloomberg)

Prabowo Responded Firmly to MSCI’s Proposal to Downgrade Indonesia

President Prabowo Subianto firmly responded to MSCI’s proposal to downgrade Indonesia from Emerging Market to Standalone Market status, stating that Indonesia would not be intimidated by external pressure. He also emphasized the govt’s readiness to implement further spending cuts if necessary. Meanwhile, the JCI rebounded on 21 Oct-26 following Bank Indonesia’s decision to maintain its benchmark interest rate at 5.75%. Foreign investors recorded a net buy of IDR 12.49 bn during the session, although cumulative foreign net outflows from Indonesian equities reached IDR 92.09 tn YTD. (IDNFinancials)

CIMB Group Explored Potential Delisting of CIMB Niaga (BNGA)

CIMB Group Holdings Bhd reportedly intensified efforts to explore delisting its 92.5%-owned subsidiary, BNGA, from the Indonesia Stock Exchange (IDX), citing the bank’s perceived undervaluation and the group’s positive long-term outlook for Indonesia. According to CIMB Investment Bank, options under consideration include a strategic investor placement, a re-IPO, and privatization, with the latter viewed as the more credible option. At BNGA’s share price of IDR 1,550/sh, acquiring the remaining minority stake would cost approximately IDR 2.95 tn, potentially rising to IDR 3.84 tn with a 30% premium. CIMB is also considering optimizing its CET1 ratio, reported at 23% at the group level, toward 20%, while maintaining dividend flows from BNGA. No official decision has been announced. (CNBC Indonesia)

Era Media Sejahtera (DOOH) Signed Three MOUs to Develop AI Data Centre Ecosystem

DOOH signed three MOUs with Chinese co.s on 19 Oct-26 to develop an integrated AI data centre ecosystem covering energy supply, facility construction, and capacity leasing. The first MOU with Jiangxi Jiusheng International Electric Power Engineering covers equipment and material procurement for a phased solar power project of up to 2 GW, starting with 300 MWac/390 MWp, including grid interconnection facilities. The second MOU with China Construction Third Engineering Bureau Group covers the phased development of an AI data centre in West Java with capacity of up to 1.6 GW, starting with 50 MW of IT capacity. The third MOU with GOME FinTech Asset Management Holdings establishes the basis for a planned lease of 50 MW of AI data centre IT capacity, with delivery scheduled in stages through 2027. (Emitennews)

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Fixed Income Daily Notes 23 Oct 2026

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Indonesia Considered Halting Gas Exports to Prioritize Domestic Supply

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MSCI Urged Stronger Market Enforcement as Indonesia Faced Potential Downgrade to Standalone Market