IDX Chief Responds to Threat of Indonesia Being Downgraded to Frontier Market by S&P Dow Jones Indices

Jakarta – Following recent assessments by Morgan Stanley Capital International (MSCI) and global rating agency Fitch Ratings, the performance of Indonesia’s capital market has now come under the spotlight of S&P Dow Jones Indices. The global index-based data and research provider has placed Indonesia on a watchlist of countries that could potentially undergo a market reclassification in 2027. S&P DJI has even cautioned that Indonesian shares could be shifted to a special measures or frontier market classification if issues regarding market transparency and liquidity are not resolved. This means there is a possibility that S&P DJI could reclassify Indonesia’s status from an Emerging Market to a Frontier Market. “If conditions deteriorate, S&P DJI may consider applying special measures to Indonesian shares,” the official announcement stated on Wednesday. Responding to this, IDX President Director Jeffrey Hendrik said the exchange has taken note of S&P DJI’s announcement regarding the placement of the Indonesian capital market on the watchlist for evaluation in 2027. “The IDX will establish constructive communication and discussions with S&P Dow Jones Indices to delve deeper into the concerns raised and understand the various aspects being considered in the evaluation process,” Jeffrey told the media on Wednesday. Together with the Financial Services Authority (OJK) and all relevant stakeholders, Jeffrey assured that the IDX will continue to make various efforts to address S&P DJI’s concerns. “The exchange is committed to undertaking various efforts to enhance transparency in the Indonesian capital market, in order to ensure a fair, orderly, and efficient market,” he said.