McGrill: The next steps in Indonesia are crucial for regaining investor confidence.

Ari Jahja, the head of research at Macquarie Capital Indonesia, stated in a report that the measures taken by Indonesia in response to the warning issued by MSCI about the country's risk are crucial for regaining investor confidence. The market has been gradually recovering as the government and regulatory agencies quickly responded to MSCI's recent warning, which suggested that issues with market accessibility could lead to a downgrade of the country's rating to "frontier market" status, one level below its current emerging market status. Some of the key measures taken by the authorities include gradually increasing the minimum free float requirement for stocks from 7.5% to 15%. "In the near term, we expect fundamentally strong stocks to continue outperforming stocks related to conglomerates, which have seen a general pullback," he said.