Goldman Sachs Cuts Indonesian Equities Rating after MSCI Flags Investability Risk

IHSG - SINGAPORE. Goldman Sachs cut its rating on Indonesian equities on Thursday and said a potential outflow in billions of dollars could be on the cards after MSCI flagged transparency problems and warned it could be downgraded to frontier market status.

MSCI's statement and its decision to freeze its updates on Indonesian securities sent the benchmark Jakarta Composite Index tumbling 7.4% on Wednesday.