While MSCI officials attended the conference call on Tuesday afternoon Jakarta time, many investors were still shocked by the index provider's sudden warning that Indonesia might face being downgraded two levels in a row. They questioned the need for such aggressive measures and wondered if the country still had a chance to retain its emerging market status. According to people familiar with the matter, MSCI managing director Raman Aylur Subramanian said in a conference call hosted by UBS Group that the situation in Indonesia is not an index issue, but a market issue. These people familiar with the matter requested anonymity in order to discuss non-public information. According to the person familiar with the matter mentioned above, he also added that reforms are necessary to eliminate “bad players.” Subramanian's comments made one thing clear: Indonesia is racing against time to avoid damage to its position, and success will depend on convincing MSCI and global investors that Indonesia can effectively regulate its stock market.

While MSCI officials attended the conference call on Tuesday afternoon Jakarta time, many investors were still shocked by the index provider's sudden warning that Indonesia might face being downgraded two levels in a row. They questioned the need for such aggressive measures and wondered if the country still had a chance to retain its emerging market status. According to people familiar with the matter, MSCI managing director Raman Aylur Subramanian said in a conference call hosted by UBS Group that the situation in Indonesia is not an index issue, but a market issue. These people familiar with the matter requested anonymity in order to discuss non-public information. According to the person familiar with the matter mentioned above, he also added that reforms are necessary to eliminate “bad players.” Subramanian's comments made one thing clear: Indonesia is racing against time to avoid damage to its position, and success will depend on convincing MSCI and global investors that Indonesia can effectively regulate its stock market.