S&P Dow Jones Indices: Definition, Function, Types, and Indonesia's Status
S&P Dow Jones Indices (S&P DJI) has come under the spotlight after including Indonesia in its Watchlist for the 2027 Country Classification. According to CNBC Indonesia, the global index provider has once again maintained the Indonesia Stock Exchange (BEI) classification as an Emerging Market. In an official announcement released on 7 July 2026, S&P DJI confirmed Indonesia’s status as an Emerging Market. However, the agency also warned that this status could change if issues related to share ownership transparency and market liquidity are not addressed.
S&P Dow Jones Indices is one of the world’s largest providers of financial market indices. The company is a collaboration between S&P Global, CME Group, and News Corp, managing indices across equities, bonds, ESG, and commodities. The indices published by S&P DJI are used as benchmarks by institutional investors, investment managers, ETFs, pension funds, and sovereign wealth funds to measure the performance of a market or investment portfolio. Currently, S&P DJI manages over one million indices covering various countries and industrial sectors, making it a primary reference in global investment. Its most famous indices are the S&P 500 and the Dow Jones Industrial Average (DJIA).
Each year, S&P DJI conducts a Country Classification Review, evaluating the maturity and accessibility of a country’s capital market. Countries are divided into four categories: Developed Market, Emerging Market, Frontier Market, and Standalone Market. The latest review maintained Indonesia’s Emerging Market status, indicating that the Indonesian capital market is still considered a viable destination for global investment with growth potential. However, the official announcement included a warning that this status could change if there is no evaluation regarding aspects of share ownership transparency, the effectiveness of shareholder information disclosure, and its implications for market liquidity. This issue was previously highlighted by the MSCI index agency.
The main function of S&P DJI is not merely to list stocks but to provide a benchmark for global investors. Its key functions include measuring stock market performance, serving as a reference for ETFs and index mutual funds, helping investors compare portfolio performance, providing country classifications based on market development levels, and acting as an investment reference for global institutions. As many passive investment funds track these indices, changes in index composition or country classification can affect international capital flows.
S&P DJI manages a variety of stock indices, including the S&P 500, which comprises approximately 500 of the largest US public companies across 11 sectors, featuring firms like Apple, Microsoft, and Amazon. The Dow Jones Industrial Average (DJIA) is one of the oldest stock indices, consisting of 30 US blue-chip companies. The S&P Global Broad Market Index (BMI) covers thousands of stocks from dozens of developed and emerging market countries, providing a broader picture of global market conditions and including companies with a market capitalisation of at least US$100 million. The S&P Global 1200 combines seven regional indices to represent roughly 70% of global market capitalisation.
Country Classification is an assessment system used by S&P DJI to evaluate the maturity of a capital market based on indicators such as accessibility.