MSCI weighs downgrading Indonesia to standalone-market status

MSCI is considering downgrading Indonesia from emerging-market status to standalone-market status due to concerns over the country's equity market investability. The rating agency has received feedback from investors about opaque ownership structures, concentrated shareholdings, and suspected coordinated trading, which it believes undermine market accessibility.

Indonesian authorities have announced reforms, including enhanced shareholder disclosure requirements and a roadmap for a minimum free-float requirement of 15 percent, but MSCI argues that market participants have yet to see consistent evidence that these measures have materially improved market functioning. As a result, MSCI is launching a consultation on a proposal to reclassify Indonesia as a standalone market, with the consultation set to run until April 30, 2027, and a final decision due by June 30.

Brief written by urgent.news from The Jakarta Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.