Indonesian lawmaker backs market fundamentals amid MSCI downgrade proposal
A consultation with market participants is under way on the proposed classification change, with a final decision due no later than 30 June 2027.
Sufmi Dasco Ahmad, deputy speaker of Indonesia’s House of Representatives, has defended the strength of the country’s capital market fundamentals following MSCI’s proposal to shift Indonesian equities from Emerging Market to Standalone Market status.
In an Instagram post cited on 26 October 2026, Dasco argued that cooperation among capital market participants would allow Indonesia to set its own direction and rating. He urged them to unite in addressing challenges, including assessments from global equity index providers.
MSCI is seeking market participants’ views before making a final ruling on the proposed change, which it said would come no later than 30 June 2027. The index provider may also publish updates on the feedback while the consultation continues.
In MSCI’s assessment, conditions in Indonesia’s equity market no longer fit its Emerging Market designation. It pointed to concerns among market participants about the investability of Indonesian shares, particularly ownership transparency and suspected coordinated trading.
The Standalone Market category sits outside MSCI’s developed, emerging and frontier classifications. A country in that category is excluded from MSCI’s main global indices. MSCI may still calculate an individual country index, but it would sit outside the standard benchmark portfolios used by most global investment managers.
