Goldman Sachs: Indonesia is likely to maintain its MSCI Emerging Markets status under reform-driven momentum

Golden Ten Data reported on June 25th that Goldman Sachs analysts pointed out in a report that although the possibility of further index weight reductions and the removal of certain stocks remains with the inclusion of updated equity disclosure information, Indonesia is still expected to maintain its MSCI Emerging Market status. MSCI recently kept Indonesia's emerging market status unchanged, acknowledged the progress of its market reforms, and postponed the final decision until November. Analysts noted that uncertainties regarding index adjustments, as well as a challenging economic environment, may continue to weigh on investor sentiment. They added that higher interest rates help stabilize the Indonesian rupiah, but weak domestic demand, slowing credit growth, and cooling retail sales all pose potential downside risks. Goldman Sachs maintains a “reduce” rating on the Indonesian stock market.