IDX to Engage in Constructive Communication and Discussion in Response to S&P Dow Jones Review

The Indonesia Stock Exchange (BEI) has confirmed it will establish constructive communication and discussion in response to a review announced by S&P Dow Jones Indices. Through its announcement on Wednesday (8/7), S&P Dow Jones Indices placed Indonesia on a watchlist, opening the possibility of reclassification from emerging market to frontier market status. BEI President Director Jeffrey Hendrik stated in Jakarta on Wednesday that the exchange will engage in constructive communication and discussion with S&P Dow Jones Indices to delve into the concerns raised and understand the various aspects highlighted in the evaluation process. Together with the Financial Services Authority (OJK) and all stakeholders, Jeffrey assured that BEI will continue to make efforts to address the concerns. “The exchange is committed to undertaking various efforts to increase transparency in the Indonesian Capital Market for the sake of a fair, orderly, and efficient capital market,” Jeffrey said. Jeffrey confirmed that BEI has carefully observed the 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. Through the S&P Dow Jones Indices Country Classification 2026/2027 Watchlist announcement, Indonesia was included on the watchlist for a possible downgrade from emerging market to frontier market. The global index provider highlighted the issue of market transparency as one of the main reasons, in line with concerns previously conveyed by MSCI. If these various issues remain unresolved, Indonesia’s market status could potentially be evaluated at the next review. Meanwhile, at the close of the first trading session on Wednesday (8/7), the Jakarta Composite Index (IHSG) closed down 66.35 points, or 1.11 percent, at 5,920.15. The LQ45 index of 45 leading stocks fell 6.99 points, or 1.17 percent, to 587.93.