MSCI opens consultation to downgrade Indonesia market status
A final decision is due by end-June 2027, while MSCI will keep freezing certain changes to Indonesia stock indexes.
MSCI has opened a consultation with market participants to downgrade Indonesia's capital market classification from Emerging Market to Standalone Market. A final decision is scheduled for no later than end-June 2027. In its explanation, MSCI said investor concerns about the ability to invest in Indonesia's stock market have risen, especially because share ownership structures are seen as not yet transparent and because of suspected coordinated trading. MSCI also said reforms announced by the authorities, including disclosure of shareholders above 1 percent, reporting of high ownership concentration, and a roadmap for a minimum 15 percent free float, have not shown consistent impact. While the consultation is under way, MSCI will keep certain index changes for Indonesian stocks frozen. Bursa Efek Indonesia said it will seek further clarification from MSCI while coordinating with OJK.