Video: How MSCI’s Assessment Could Affect Investment Appetite and Share IPOs

Jakarta — With MSCI potentially downgrading Indonesia’s stock market from Emerging Market to Standalone Market status, regulators and market participants are continuing to make improvements and strengthen efforts to transform the country’s capital market.

Prama Nugraha, chairman of the Indonesian Securities Companies Association (APEI), said APEI and other capital-market associations were continuing to coordinate efforts to create a fairer and healthier market, including by increasing share free float to strengthen market confidence.

The improvements to Indonesia’s stock market are expected to support a recovery and attract investors back, as well as encourage bond issuance and share IPOs, particularly by companies with strong fundamentals.