IDX Confident Indonesia Will Retain Emerging Market Status
The Indonesia Stock Exchange (IDX) is confident that global index providers will maintain Indonesia’s capital market status as an Emerging Market. The Acting President Director of IDX, Jeffrey Hendrik, refuted claims that Indonesia’s market status would be downgraded to a Frontier Market.
Jeffrey noted that screenshots containing information suggesting Morgan Stanley Capital International (MSCI) had placed Indonesia in the Frontier Market category had recently been circulating. “That information is incorrect. We once again urge investors to check and cross-check information circulating in the market before making decisions,” he told reporters at the IDX Building, Jakarta, on Thursday, 4 June 2026.
MSCI is scheduled to announce the results of its 2026 Global Market Accessibility Review on 18 June and its 2026 Annual Market Classification Review on 23 June 2026. To date, MSCI continues to maintain Indonesia’s status as an Emerging Market.
“Based on the concrete steps we have taken, we have very high expectations that Indonesia will remain in the Emerging Market category,” said Jeffrey. He explained that the exchange authorities have been working to restore investor confidence by increasing transparency, enhancing data granularity, and providing information regarding high shareholding concentration.
Meanwhile, Wijayanto Samirin, an economist from Universitas Paramadina, stated that the decline in the Jakarta Composite Index (JCI) would not trigger a downgrade of Indonesia’s stock classification to Frontier Market. On Wednesday, 3 June 2026, the JCI closed down 4.11 per cent at the 5,941 level, marking its lowest level since May 2021. On Thursday morning, the JCI even plummeted to the 5,655 level. By Thursday afternoon, 4 June 2026, the JCI closed weaker by 101.28 points, or 1.70 per cent, at 5,839.78.
Wijayanto noted that there are three factors that could lead to Indonesia’s downgrade: governance issues, liquidity issues, and transparency issues. “I do not believe such a downgrade will occur in the near future,” he told Tempo on Wednesday, 3 June 2026.