MSCI Warns of Transparency Issues in Indonesia's Market

The Jakarta Composite Index, despite being the best performing major Asia-Pacific index for the year, has lost almost 30% year-to-date. MSCI highlighted ongoing transparency concerns in its annual Global Market Accessibility Review, downgrading Indonesia's Information Flow assessment due to issues with shareholding structures and coordinated trading activities. These factors might hinder international investors' assessment of free floats and market prices. Additionally, the Indonesian rupiah is at a record low against the dollar, raising concerns about fiscal health and capital outflows.