MSCI is consulting on a proposal to downgrade Indonesia from emerging-market to standalone-market status, citing concerns about market investability and governance. The consultation runs until April 30, 2027, with a final decision due by June 30.
MSCI said it was considering downgrading Indonesia from emerging-market to standalone-market status, citing persistent concerns about the investability and governance of the country’s equity market. The index provider launched a consultation after warning in June that Indonesia could face reclassification if market-access concerns persisted.
MSCI said investors had raised concerns about opaque ownership structures, concentrated shareholdings and suspected coordinated trading. Indonesian authorities have announced reforms, including enhanced shareholder disclosure requirements and a roadmap for a minimum free-float requirement of 15%, but MSCI said market participants had yet to see consistent evidence that the measures had materially improved market functioning. The consultation runs until April 30, 2027, and a final decision is due by June 30.
