MSCI warned the market risked a downgradeOverseas investors sold 13.96 trillion rupiah (S$1.05 billion) worth of Indonesian shares in 2025, the worst year of outflow since 2020. PHOTO: BLOOMBERG[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. “We expect the market to remain under pressure and do not view this as an entry point,” Goldman strategists said as they lowered their rating on Indonesian equities to ‘underweight’ from ‘market weight’. SEE ALSO Indonesian equities plunge after MSCI flags ownership, free float concerns DECODING ASIA Navigate Asia ina new global order Get the insights delivered to your inbox. The Indonesian government is expected to hold a meeting soon regarding the MSCI matter, senior economic minister Airlangga Hartarto said on Wednesday.