MSCI warning on clouds investor confidence as Jakarta targets 8% growth

The Indonesian economy is showing resilience despite global uncertainty uncertainty elsewhere and volatility in the financial markets. Growth reached 5.5% in the first half of the year while investment increased in the same period. But financial-market turmoil has raised fresh concerns about investor confidence, after the MSCI warned it could strip Indonesia of its emerging-market status. That is adding to the challenges facing Southeast Asia's largest economy, as it seeks more private capital to help reach the government's ambitious 8% growth target. Olivia Marzuki reports.