Antara News·Indonesia·Friday, November 13, 2026 at 10:55 AM UTC

Indonesia defends market credibility amid MSCI reclassification

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Rizka Khaerunnisa, Yashinta Difa

..the Indonesian economy is resilient, the State Budget is well managed,

Jakarta (ANTARA) - The credibility of Indonesia's financial market is key to weathering market volatility triggered by global index provider MSCI's recent reclassification announcements, Finance Minister Suahasil Nazara has said.

Speaking at the monthly "APBN Kita" press conference in Jakarta on Friday, Suahasil said this credibility rests on sound macroeconomic management, resilient economic growth, stable inflation, and prudent State Budget management.

"We have to build our market on the credibility of economic management and State Budget management," Suahasil said.

Indonesian financial markets came under significant pressure in late October following MSCI's October 16, 2026, proposal to reclassify the Indonesian capital market as a standalone market.

The pressure was reflected in Government Securities (SUN) auctions, where incoming bids fell from Rp64.86 trillion (approximately US$3.56 billion) on October 13 to Rp31.09 trillion (US$1.71 billion) on October 27.

However, investor confidence subsequently rebounded, with SUN bids climbing to Rp79.71 trillion (US$4.38 billion) by November 10.

"This is built on the belief that the Indonesian economy is resilient, the State Budget is well managed, the State Budget is managed in credible manners," Suahasil noted.

"We cannot undermine the credibility of economic management and the management of the State Budget. This is what we must continue to do," the minister added.

Cumulatively, Indonesia recorded a net foreign capital inflow of Rp127.6 trillion (US$7.01 billion) year-to-date as of November 11.

This comprised Rp43 trillion (US$2.36 billion) in Government Securities (SBN) and Rp182.4 trillion (US$10.02 billion) in Bank Indonesia Rupiah Securities (SRBI), despite equity outflows of Rp97 trillion (US$5.33 billion) amid MSCI-related scrutiny.

"This (outflow in the stock market) cannot be separated from being related to MSCI. MSCI gave us the notation in January, and yesterday on October 16 it was conveyed again," Suahasil explained.

Despite the MSCI scrutiny, Indonesia continued to attract positive capital inflows, supported by competitive returns, attractive SBN yields, and strong investor demand for domestic fixed-income instruments.

Looking ahead, Suahasil expressed optimism that coordinated efforts by the Financial Services Authority (OJK) to address the MSCI issue would help curb equity outflows and stabilize the market.

"The handling of MSCI (dynamics) which is now carried out by OJK is very, very important," Suahasil concluded.

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