MSCI Downgrades Indonesia's Information Flow Rating to Negative

Morgan Stanley Capital International (MSCI) has downgraded Indonesia’s information flow assessment to a negative level. This assessment is the result of the Global Market Accessibility Review 2026 recently released by MSCI.

In the review, MSCI assessed five criteria: openness to foreign investors, ease of capital inflows and outflows, efficiency of the operational framework, availability of investment instruments, and stability of the institutional framework. “Information flow is one aspect of the assessment within the operational framework efficiency criterion,” MSCI stated in its report on Friday, 19 June 2026.

MSCI lowered Indonesia’s information flow rating from “+” to “-”. For context, MSCI uses three rating levels: “++” meaning no issues, “+” meaning no issues but room for improvement, and “-” meaning improvement is needed.

Within the Emerging Market group, only Indonesia and Turkey experienced a rating downgrade. “The Information Flow criterion has been downgraded for both markets, reflecting ongoing concerns regarding free float transparency and proper price formation,” MSCI wrote in the report released on Friday, 19 June 2026.

According to MSCI, accessibility concerns stem from a lack of transparency in share ownership structures and indications of coordinated trading behaviour that undermine proper price formation. They stated these issues can disrupt price discovery and amplify volatility.

“Investability concerns persist due to limited transparency in share ownership structures and coordinated trading behaviour that undermines proper price formation,” MSCI said. Additionally, they noted that in the Indonesian capital market, detailed information is not always available in English.

Indonesia currently remains classified as an Emerging Market. However, MSCI is scheduled to release the results of its Annual Market Classification Review on 23 June 2026, New York time, or 24 June 2026, Indonesia time.