IDX to Meet MSCI Over Indonesia’s Market Classification
IDX to Meet MSCI Over Indonesia’s Market Classification
19 Okt 2026 14:42 WIB
Voice of Indonesia
Poin Utama
IDX seeks answers from MSCI over Indonesia’s potential downgrade from Emerging Market status.
IDX cut the Auto Rejection Lower (ARB) threshold to curb panic after MSCI raised concerns over market transparency and investability.
RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) will meet with global index provider Morgan Stanley Capital International (MSCI) to seek clarification on the rationale behind its decision to place Indonesia’s capital market under consultation for a potential reclassification.
IDX President Director Jeffrey Hendrik said the exchange, the Financial Services Authority (OJK), and even several MSCI participants and global investors were caught off guard by the announcement.
“We have an online meeting with MSCI this afternoon. We immediately requested time to meet with MSCI. I will provide an update after the meeting,” Jeffrey told reporters at the IDX Media Room in Jakarta on Monday, Oct. 19, 2026, as quoted by Antara.
The meeting is scheduled to take place online at 3:30 p.m. Jakarta time.
Jeffrey said the announcement triggered panic and uncertainty among market participants, prompting the exchange to take measures to stabilize trading conditions.
As part of those efforts, IDX lowered the Auto Rejection Lower (ARB) threshold from 15 percent to 7 percent to provide investors with more time to assess developments before making investment decisions.
Jeffrey acknowledged that the policy was an unusual step but said preliminary reviews suggested it had been effective in easing panic. “This policy will be reviewed, but based on our evaluation from this morning until this afternoon, it has been fairly effective in reducing panic,” he said.
He noted that the Jakarta Composite Index (JCI) was down about 5 percent by the close of the first trading session on Monday, remaining above the new 7 percent ARB threshold.
Jeffrey said IDX had been closely monitoring developments since Friday and holding discussions with various stakeholders, including market participants.
He added that the exchange would provide an update after the meeting with MSCI, including clarification on the considerations behind the decision to place Indonesia under consultation.
On Friday, Oct. 16, MSCI announced a consultation with market participants regarding a proposal to reclassify Indonesia’s capital market from Emerging Market to Standalone Market status.
The consultation period will remain open until April 30, 2027, while MSCI is expected to announce its final decision on or before June 30, 2027.
According to MSCI, concerns among market participants have increased significantly regarding the investability of Indonesia’s capital market, including uncertainty surrounding share ownership structures and allegations of coordinated trading practices. ***
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