MSCI Warns Indonesia Still at Risk of Downgrade to Frontier Market

MSCI has warned that Indonesia still faces the possibility of being downgraded to frontier market status. The caution highlights persistent issues regarding market accessibility and liquidity that could affect the country’s standing in the global index provider’s classification. A downgrade from emerging market to frontier market would represent a significant setback for Indonesia, potentially deterring foreign investment and reducing the country’s weight in global equity benchmarks. The warning serves as a reminder of the structural challenges that need to be addressed to maintain investor confidence in the Indonesian capital market.