Indonesia tightens stock market oversight

The stock exchange will add independent members to the committee monitoring concentrated ownership and initiate investigations when coordinated trading is suspected. The measures follow warnings from MSCI that Indonesia could face a downgrade in its market classification. 

MSCI's earlier warning triggered sharp market declines on October 16 and 19. On Monday morning, Indonesia's benchmark index fell approximately 0.6%, while the rupiah weakened 0.4%. The reforms could support investor confidence, although uncertainty over the country's index status remains.