Allspring Global Investments warned Indonesian bank and telecom shares could
fall further amid the risk of an MSCI downgrade of the Indonesia market. Banks
and telecoms account for roughly 80% of the MSCI Indonesia index. Since MSCI’s
initial January warning the index has dropped more than 40%; PT Telkom Indonesia
Persero has nearly halved and major lenders PT Bank Central Asia (BCA) and PT
Bank Rakyat Indonesia Persero (BRI) are down at least 23%.