IDX Chief Speaks Out on S&P Announcement

The Indonesia Stock Exchange (IDX) has spoken out regarding the announcement by global index provider S&P Dow Jones Indices (S&P DJI) that places Indonesia on its 2027 watchlist. In its Country Classification - 2026/2027 Watchlist released on 7 July 2026, S&P DJI placed Indonesia on the Watchlist 2027. This means the republic is now on the index provider’s monitoring list for a possible classification change at the 2027 annual review. Indonesia, currently classified as an Emerging Market, could potentially be reclassified to Special Measures/Frontier status. IDX President Director Jeffrey Hendrik stated that the exchange has scrutinised S&P Dow Jones Indices’ announcement regarding the placement of the Indonesian capital market on the watchlist for the 2027 evaluation, which opens the possibility of reclassifying Indonesia’s status from Emerging Market to Frontier Market. “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 under consideration in the evaluation process,” Jeffrey told reporters in a written statement on Wednesday (8/7/2026). Together with the Financial Services Authority (OJK) and all stakeholders, the IDX will continue to undertake various efforts to address the existing concerns. The exchange is committed to making various efforts to improve transparency in the Indonesian Capital Market for the sake of a fair, orderly, and efficient capital market. Besides Indonesia, S&P DJI also placed Turkey on the 2027 Watchlist with a similar scenario (Emerging to Special Measures/Frontier), along with Nigeria, which is being monitored for a possible upgrade from Standalone to Frontier. The core issue prompting S&P DJI to place Indonesia under monitoring is the matter of share ownership transparency and its impact on liquidity and the reliability of price formation in the market. Global institutional investors often question the lack of openness regarding share ownership structures on the Indonesian bourse, coupled with concerns over alleged coordinated trading patterns. These two issues make it difficult for foreign investors to gauge the true free float and cast doubt on whether market prices truly reflect a fair mechanism. The good news is that S&P DJI assesses that Indonesian authorities—from the OJK to the IDX—have taken a number of regulatory steps to address the issue. However, S&P issued a firm note: if the problems are not fully resolved, Indonesia could be subject to Special Measures or even be reclassified as a Frontier Market at the 2027 review. Conversely, if transparency and market liquidity improve, positive sentiment will flow and Indonesia’s Emerging Market status stands a chance of being maintained.