Prabowo’s Anger Over MSCI Shock Revealed, Brother Warns of Serious Consequences

JAKARTA, Investortrust.id — President Prabowo Subianto was furious during last month’s market shock after four warning letters from MSCI, New-York based financial services company, went unreported to him, his brother revealed on Tuesday, Feb 10, 2026 in Jakarta, marking the first public disclosure of the president’s reaction to the crisis. The anger surfaced at the height of the turmoil that rattled equities, triggered resignations, and forced regulators into emergency reforms.

Hashim Djojohadikusumo, who serves as presidential special envoy for energy and climate change, said the president’s anger last month was directed at senior officials who failed to escalate repeated correspondence from MSCI. “I am talking about the highest level in government,” Hashim said during the China Conference Southeast Asia at the St Regis Hotel, Jakarta, Tuesday.

He said the government had received multiple warnings before MSCI published its assessment. “What really made the government very angry, angry at its own officials, is that MSCI had sent four letters,” Hashim said.

According to him, the publication should not have caught policymakers off guard. “People said this was surprising. It should not have been,” he said.

The MSCI assessment last month triggered sharp volatility in Indonesian equities and renewed scrutiny over free float standards and ownership transparency. Several stocks faced review risks under MSCI’s revised methodology, prompting heavy selling pressure across the market.

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In response to the fallout, the Indonesia Stock Exchange confirmed it would hold a follow up meeting with MSCI on Wednesday, Feb 11, 2026. “The meeting with MSCI will proceed as planned and will discuss in more technical detail the proposal submitted by the exchange on Feb 5, 2026,” said BEI interim chief executive Jeffrey Hendrik in Jakarta on Tuesday.

Jeffrey said discussions would focus on investor classification reforms and broader disclosure of share ownership. “The concern from FTSE Russell is the same as MSCI, namely transparency and the granularity of investor data,” he said.

Earlier last month, Coordinating Minister for Economic Affairs Airlangga Hartarto expressed confidence Indonesia would retain its emerging market status despite the review. “These policies can open up who the ultimate beneficial owner is and who is transacting in the stock market, so it will become transparent,” Airlangga said at Wisma Danantara, Jakarta, Friday, Jan 30, 2026.

Airlangga said at the time that regulators had agreed to gradually raise the minimum free float requirement from 7.5% to 15% and accelerate the demutualization of the exchange. “Demutualization will strengthen the independence of the exchange and improve disciplinary actions against market distortions,” he said.

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The political fallout intensified as four officials at the Financial Services Authority and a top exchange official resigned in the weeks following the MSCI episode. The departures were widely viewed as part of a broader effort to restore credibility and respond to presidential pressure.

Hashim said the market correction also reflected past supervisory failures and inflated valuations in certain stocks. “Now it is about cleaning up the rotten eggs, and I think that will be done. Frankly, there will be serious consequences,” he said.