MSCI extends Indonesia review to November, flags possible downgrade
FILE PHOTO: A worker wipes a handrail near the reflection of an electronic board displaying stock movement at the Indonesia Stock Exchange (IDX) in Jakarta, Indonesia, January 30, 2026. REUTERS/Ajeng Dinar Ulfiana/File Photo
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June 23: Global index provider MSCI said on Tuesday it extended its review of Indonesia’s status as an “emerging” markets economy and may consider options including a reclassification to “frontier” status, if progress is insufficient by its November review.
The global index provider flagged concerns from international institutional investors over persistent opacity in shareholding structures and suspected coordinated trading behaviour in Indonesia.
It said these issues relate directly to the Information Flow and Market Infrastructure pillars of its Market Accessibility framework, with market participants raising “profound investability concern” stemming from them.
MSCI acknowledged recent transparency reforms announced by regulator Otoritas Jasa Keuangan (OJK), stock exchange PT Bursa Efek Indonesia (IDX) and depository PT Kustodian Sentral Efek Indonesia (KSEI).
Indonesian assets have been struggling since January, when MSCI froze the country’s stocks in its indexes and threatened a potential downgrade to “frontier” status, pointing to opaque ownership, weak free float visibility and unreliable trading data.
Source: Reuters
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