Indonesia central bank chief calls MSCI warning 'short-term shock'

Key facts

• MSCI's warning of a possible downgrade for Indonesia's stock market was called a "short-term shock" by central bank governor Destry Damayanti.
• Damayanti believes reforms by Indonesia's financial services authority will address MSCI's concerns.
• MSCI currently classifies Indonesia as an "emerging" market.

JAKARTA, Oct 29 (Reuters) - Indonesia's central bank governor Destry Damayanti said on Thursday that global index provider MSCI's recent warning of a possible downgrade of the country's stock market to "standalone" status was "a short-term shock." MSCI currently classifies Indonesia as an "emerging" market. The recent warning was more severe than MSCI's January warning that it could downgrade Indonesia to "frontier" status. Damayanti said improving transparency could not happen overnight but believed several reforms introduced by Indonesia's financial services authority (OJK) would be enough to address MSCI's concerns. Bank Indonesia would remain focused on stabilising the rupiah, she added.