Prabowo’s defiance may not save Indonesia’s sinking stock market
As MSCI threatens a downgrade, Indonesia’s leader doubles down on resistance.
The story
Indonesian President Prabowo rejects MSCI's potential market downgrade, calling it an intimidation tactic, as the country faces economic and environmental challenges.
Source: fortune.com
Our reading
Prabowo says Indonesia won’t be intimidated by MSCI’s threat to reclassify the country’s market, but the real question is whether the market will be intimidated by the president’s rhetoric.
The president’s defiant tone might rally nationalist sentiment, but it doesn’t address the real issue: why Indonesia’s market is being scrutinized in the first place, and whether the country is actually doing anything to fix the problems that led to the downgrade.
It’s one thing to say you won’t back down, but it’s another to actually make the market worth investing in.
