IDX Opens Up About the Risk of MSCI Downgrading Indonesian Shares

The Indonesia Stock Exchange (IDX) has openly discussed the possibility of a risk of downgrade of Indonesia’s stock index from Emerging Market to Frontier Market by Morgan Stanley Capital International (MSCI).

IDX’s Director of Company Assessment, I Gede Nyoman Yetna, revealed that the exchange authority continues to engage in active and constructive discussions with MSCI. As a result, MSCI has acknowledged all efforts in market transparency reform undertaken by OJK, IDX, and KSEI.

“In the latest discussions, the focus was on the market reforms already implemented by OJK, IDX, and KSEI,” Nyoman stated when asked about discussions regarding the potential downgrade of the index with MSCI, in a written response on Thursday (23/4/2026).

Currently, MSCI is conducting further assessment of the implementation of these reforms. Additionally, the global index provider is seeking reviews from global market participants regarding the effectiveness of the regulatory changes in the Indonesian Capital Market.

Nyoman emphasised that since the announcement of the completion of transparency reforms on 2 April 2026, market confidence has continued to strengthen. This is reflected in the Composite Stock Price Index (IHSG), which has risen by 8%, moving from 7,026 points to 7,559 points.

“This also reflects that the public and investors have positively welcomed the reforms that have been carried out,” he added.

IDX also provides a dedicated hotdesk to intensively and accommodatively address concerns from market participants. The exchange authority is committed to ensuring that trading continues in an orderly, fair, and efficient manner in line with global standards.