They downgraded the country’s equities to “underweight” in the firm’s Asian and emerging market allocation.
Indonesia’s fiscal policy and a stronger dollar pose risks to investing in its stocks, strategists at Morgan Stanley wrote in a note while lowering their recommendation.
“We see near-term uncertainty over the direction of future fiscal policy stance as well as some weakness in the FX market amid still high US rates and a firm US dollar outlook,” strategists including Daniel Blake wrote in the June 10 note.
