Market Begins to Anticipate Results of MSCI and FTSE Reviews, Says Analyst

Kiwoom Sekuritas Indonesia Head of Research Liza Camelia Suryanata assessed that market participants have already begun to anticipate the results of the Morgan Stanley Capital International (MSCI) and FTSE Russell reviews, especially institutional and foreign investors. This is reflected in foreign capital outflows reaching nearly Rp 80 trillion throughout the current year. Despite this, Kiwoom Sekuritas is optimistic that Indonesia’s status will not be downgraded from emerging market to frontier market. According to Liza, what investors are waiting for is not merely whether Indonesia remains an emerging market, but whether MSCI and FTSE provide additional notes regarding market accessibility, regulatory certainty, investor protection, and the independence of market mechanisms. ‘Because of this, this year’s review carries greater psychological weight compared to previous years,’ she stated in a written statement on Thursday, 18 June 2026. Liza sees three main issues that risk being noted by MSCI and FTSE regarding Indonesia. First, market accessibility and ease of investing. She noted that foreign investors pay close attention to the ease of entering and exiting the market, transaction processes, settlement, short selling, securities lending, and operational market efficiency. The second issue is policy certainty. Liza explained that global investors can generally accept policy changes, but they are highly sensitive to policies that emerge suddenly, lack market consultation, or have the potential to significantly alter market mechanisms. The third issue is governance and market confidence. In recent months, Liza said, various discussions have emerged regarding the state’s increasingly large role in the financial market, including through various policy initiatives and strategic investment institutions. ‘For foreign investors, the most important thing is not who the actor is, but whether the market mechanism remains transparent, competitive, and predictable,’ she stated. MSCI is scheduled to announce its Global Market Accessibility Review in the early hours of Friday, 19 June 2026, Indonesia time. Subsequently, the FTSE Russell rebalancing results are scheduled to take effect on 22 June 2026. Meanwhile, on 24 June 2026, MSCI will announce its Annual Market Classification Review.