Jakarta, Oct. 21 -- Bank Indonesia (BI) is closely monitoring domestic financial markets and potential foreign capital outflows following MSCI's proposal to reclassify the Indonesian capital market.

"We continue to keep a close watch on developments in our capital market. Naturally, we are monitoring any outflows that have occurred in the wake of this MSCI announcement," BI Deputy Governor Destry Damayanti said at a press conference in Jakarta on Wednesday.

The MSCI announcement, issued on Friday (October 16), launched a consultation period on a potential reclassification of Indonesia from an "Emerging Market" to a "Standalone Market." A final decision is expected by the end of June 2027.

The announcement put immediate pressure on the ...