Hashim Djojohadikusumo, brother of Indonesian President Prabowo Subianto and his special envoy for climate change, has publicly warned that failures at the Indonesia Stock Exchange and the Financial Services Authority (OJK) triggered a market rout that wiped out retail investor savings and embarrassed the country on the global stage. Hashim said Prabowo was "extremely angry" after index provider MSCI flagged concerns over transparency and possible trading manipulation in Indonesia's capital markets, concerns that centered on thin disclosure around block trades and suspicions that some listed companies' share prices were being coordinated rather than set by genuine market demand.
A deadline hanging over Jakarta
MSCI has given Indonesian regulators until May 2026 to address the concerns, warning that it could otherwise downgrade the country's equities from emerging-market to frontier-market status, a shift that would likely trigger outflows from index-tracking funds. A downgrade of that kind would be unusual for an economy as large as Indonesia's and would mark it out as a cautionary case among emerging markets, since most frontier-market reclassifications happen to far smaller exchanges, not Southeast Asia's largest. Prabowo has reportedly pushed for leadership changes at both the IDX and OJK in response to the episode.
