S&P Dow Jones Places Indonesia on Watchlist for Market Reclassification

Global index provider S&P Dow Jones Indices (S&P DJI) has placed Indonesia on a watchlist for a 2027 review. Currently, Indonesia retains its status as an emerging market. However, S&P DJI has opened the possibility of applying special treatment to Indonesian shares, with a potential reclassification to frontier market status. S&P DJI stated that it continues to monitor developments regarding share ownership transparency in Indonesia and the guidance issued by the Indonesia Stock Exchange to address the issue. “If circumstances worsen, S&P DJI may consider applying special treatment for Indonesian securities,” the firm wrote in an announcement on Wednesday, 8 July 2026. According to S&P DJI’s country classification methodology, if the issue remains unresolved one year from the date the special treatment is applied, Indonesia’s market classification will be assessed at the next annual review. Besides Indonesia, Turkey and Nigeria were also placed on the S&P Dow Jones Indices Watchlist. Previously, global index provider Morgan Stanley Capital International (MSCI) decided to maintain the freeze on Indonesian shares in its August 2026 index review. MSCI said it would keep all Foreign Inclusion Factors (FIF) and number of shares frozen, would not add Indonesian shares to the MSCI Investable Market Index, and would maintain the freeze on upward migrations across all index size segments. MSCI also stated it will continue to remove securities identified by Indonesian authorities as part of the high share concentration (HSC) framework. The firm added that it will keep using 1 percent shareholder disclosure data to adjust free float estimates where necessary. This ongoing freeze follows MSCI’s decision to retain Indonesia’s emerging market status in its market classification review in June, while stating it would continue to review the implementation of capital market reforms until November.