IDX Seeks Clarification from MSCI over Potential Change to Indonesia’s Market Status

Jakarta (ANTARA) – The Indonesia Stock Exchange (IDX) said it would seek further clarification from MSCI on the considerations and assessment behind its decision to open a consultation on a proposed change to Indonesia’s stock market classification from Emerging Market to Standalone Market.

IDX President Director Jeffrey Hendrik said the move took into account the progress made and reforms implemented in Indonesia’s capital market to date.

“The IDX respects MSCI’s independence in conducting its assessments and determining market classifications according to its own methodology,” Jeffrey told reporters in Jakarta on Friday.

Jeffrey said the IDX and the Financial Services Authority (OJK) had taken concrete steps to improve the transparency, integrity and quality of Indonesia’s capital market.

He said the improvements had received appreciation and positive responses from global investors and international index providers.

“This reflects the continuing commitment of the authorities and all stakeholders to strengthening the credibility and competitiveness of Indonesia’s capital market,” Jeffrey said.

Jeffrey also stressed that MSCI’s announcement concerned a consultation process, with submissions accepted until 30 April 2027, and was not a final decision.

The IDX would continue to coordinate closely with the OJK and relevant stakeholders to ensure that securities trading in Indonesia’s capital market remained orderly, fair and efficient, while maintaining the confidence of domestic and global investors, he said.

On Friday morning (16 October), Indonesia time, MSCI announced that it had opened a consultation on a proposed change to Indonesia’s market classification from Emerging Market to Standalone Market.

MSCI is due to announce its final decision by the end of June 2027 and may provide interim updates on market participants’ feedback during the consultation period.

MSCI said market participants’ concerns had risen significantly over the investability of Indonesia’s equity market, including continued opacity in share-ownership structures and alleged coordinated trading.

MSCI welcomed feedback from market participants on the proposed reclassification of the MSCI Indonesia Index until 30 April 2027. It will announce its decision on or before 30 June 2027.