An influential Indonesian business tycoon said that global index provider MSCI threatened to remove Indonesia from its index. This move was unfair and somewhat excessive. Hashim Zoyohardikusumo is the younger brother of Indonesian President Prabowo Subianto and one of his core advisors. He said Indonesia deserved a higher rating than the “independent market” that MSCI warned last month. The risk reduction in MSCI stems from concerns about Indonesian stock market manipulation and poor regulatory enforcement; once implemented, Indonesia will be classified in the same category as Zimbabwe, Nigeria, Argentina, etc. Hashim said, “They have a point. If Indonesia wants to actually enter the domestic stock market and capital market with combined investment capital, the market must be transparent and follow industry best practices. But downgrading directly to an independent market is a bit excessive in my opinion.” When asked if the government will pursue tycoons suspected of manipulating stock prices, Hashim said, “I think the government will take all necessary measures to maintain market order and the stability of the Indonesian economy.”

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