MSCI Update: No Escalation Signals for Downgrade, Index Freeze Maintained Until May 2026

JAKARTA, KOMPAS.com - MSCI (Morgan Stanley Capital International) has released an update regarding Indonesian stocks as a follow-up to the index freeze policy announced on 27 January 2026.

The update responds to a series of transparency reforms rolled out by the Financial Services Authority (OJK), the Indonesia Stock Exchange (BEI), and the Indonesian Central Securities Depository (KSEI) in early April.

“Overall, the results of this update are considered in line with market expectations, with no indications pointing towards a downgrade of Indonesia’s status to a frontier market,” MSCI stated, as quoted on Monday (20/4/2026).

In the update, MSCI reaffirms that stocks included in the high shareholding concentration (HSC) list will be excluded from the MSCI index.

This policy follows precedents previously applied in other markets, such as Hong Kong. Currently, there are nine issuers on the HSC list, including several stocks that are MSCI constituents and potentially directly impacted by this policy.

Additionally, MSCI has decided to maintain the index freeze policy on several key parameters until the May 2026 index review.

“The freeze covers increases in the Foreign Inclusion Factor (FIF) and Number of Shares (NOS), temporary suspension of adding new stocks to the MSCI Investable Market Indexes (IMI), and delays in migrating stocks to larger capitalisation segments, such as from small cap to standard,” the MSCI statement continued.

Looking ahead, MSCI is scheduled to conduct a more comprehensive review in the market accessibility review in June 2026. Meanwhile, for the May 2026 evaluation, MSCI confirms there will be no significant policy changes, thus Indonesia’s market status will remain in a status quo condition for the time being.