Regulatory shake-up addresses key issues as Citi remains optimistic about confidence recovery in the Indonesian market

Glonghui, February 2｜Due to the coordinated policy response by Indonesian authorities to address MSCI's concerns over its investability, analysts at Citi Research stated in a report that these measures are reliable and timely. The Indonesian Financial Services Authority and the Indonesia Stock Exchange swiftly carried out leadership changes, appointing experienced capital market veterans to address the urgent transparency and governance deficiencies highlighted by MSCI last week. The latest actions by the authorities may reduce the risk of MSCI taking more severe follow-up measures. Citi stated: "We believe that reforms, combined with domestic capital flows, will support market sentiment, indicating that the setback triggered by MSCI may be temporary."