Strong Statement at the Plenary Cabinet Meeting

President Prabowo Subianto delivered a stern message to Morgan Stanley Capital International (MSCI) during the opening of a Plenary Cabinet Meeting at the Presidential Palace in Jakarta on Wednesday (21/10/2026). 'Whatever MSCI tries, whatever protests try to intimidate us, I tell MSCI: the Indonesian nation has no fear and will not falter. We are not afraid, we have courage, we are willing to sacrifice, and we will not surrender,' Prabowo said, as quoted by Bloomberg Technoz.

The remarks marked the head of state's first direct response to MSCI's proposal, which had rattled the domestic capital market. He underscored that the government will not back down in the face of pressures and challenges.

Threat of Reclassification to Standalone Market

On Friday (16/10), MSCI announced plans to hold a consultation regarding the potential reclassification of Indonesia's stock market from Emerging Market to Standalone Market status. The announcement triggered a sharp drop in the Jakarta Composite Index (IHSG - Indeks Harga Saham Gabungan) and stoked global investor concerns over market sentiment toward Indonesia.

A day before the cabinet meeting, the President received recommendations from the National Economic Council (DEN - Dewan Ekonomi Nasional) emphasizing that capital market reforms must proceed and regulatory enforcement be reinforced. 'We advised continuing the capital market reforms already underway and sustaining regulatory enforcement measures that have also been announced,' said DEN Vice Chair Mari Elka Pangestu, as quoted by ANTARA.

Two-Year Administration Review

This Plenary Cabinet Meeting was convened in the central courtyard of Merdeka Palace to evaluate the two-year milestone of Prabowo's administration alongside Vice President Gibran Rakabuming Raka, attended by the full Red and White Cabinet lineup. Meanwhile, the IHSG rebounded to close up 0.94 percent at the 5,328 level during Wednesday afternoon trading, according to reports from CNN Indonesia and investor.id.