IDX Surprised by MSCI Downgrade Proposal; No Discussion in Bangkok
Jakarta, CNBC Indonesia — The Indonesia Stock Exchange (IDX) said it was surprised by Morgan Stanley Capital International’s (MSCI) announcement that it was considering reclassifying Indonesia’s equity market from emerging market to standalone market status. The issue had not been discussed at a meeting between Indonesian financial-sector stakeholders and MSCI in Bangkok, Thailand, on Tuesday (13 October 2026).
IDX Director of Development Iding Pardi said the meeting, organised by the Daya Anagata Nusantara Investment Management Agency (Danantara Indonesia), involved not only MSCI but also global index providers and other ratings agencies. Global investors and representatives of the government, the Ministry of Finance, Bank Indonesia and the Financial Services Authority (OJK) also attended.
Iding said the discussions were active, with most participants’ questions focusing on fiscal and monetary policy and reform of state-owned enterprises (SOEs). MSCI did ask questions, but the discussion was limited to the effectiveness of policies and their enforcement.
“There was one question about MSCI. We gave each party an opportunity to speak, including MSCI, which asked about what I mentioned earlier: effectiveness and enforcement. That was all, so there was no signal that there was a possibility of moving to standalone market status,” Iding said at an IDX press conference in Jakarta on Friday (16 October 2026).
Iding said the IDX had also been discussing Indonesia’s capital-market reforms with MSCI and global investors. He said global investors had welcomed the steps Indonesia planned to take, although some continued to question the effectiveness of policies and enforcement.
Iding said he was also surprised that MSCI’s announcement about a possible change to Indonesia’s market classification had come earlier than expected. He said MSCI’s final announcement had previously been expected in November 2026, around 12 November.
“We were honestly surprised, and many others were surprised too. Market participants were surprised: how could it happen so much earlier?” Iding said.
Danantara Indonesia held a roundtable forum titled “Reform, Transparency and Capital: Indonesia’s Financial Sector and the Role of Danantara” in Bangkok, Thailand, on Tuesday (13 October 2026). The meeting was part of the programme surrounding the International Monetary Fund’s (IMF) Annual Meetings.
Officials attending the forum included Indonesian Deputy Finance Minister Suahasil Nazara, OJK chairwoman Friderica Widyasari Dewi, Bank Indonesia Deputy Governor Thomas A.M. Djiwandono, and IDX Director of Development Iding Pardi.
Representatives of institutions and investors also attended, including Moody’s Ratings, S&P Global Ratings, Fitch Ratings, the International Finance Corporation (IFC), Standard Chartered Bank, J.P. Morgan, The TCW Group and MSCI.