Goldman Sachs analysts say Indonesia is likely to retain its MSCI
emerging-market status as market reforms progress, though updated
equity-disclosure data could still trigger further index weight cuts and stock
deletions. MSCI has kept Indonesia's EM status unchanged and delayed a final
decision until November. Analysts say index-adjustment uncertainty and a
challenging economy may weigh on investor sentiment; higher rates support the
rupiah, but weak domestic demand, slowing credit growth and cooling retail sales
are downside risks. Goldman Sachs maintains an underweight rating on Indonesian
equities.
