Indonesian official points to Turkey over MSCI downgrade risk
MSCI could consult on lowering Turkey’s market classification if reforms show insufficient progress by June 2027, according to Reuters.
Indonesia is not alone in facing the prospect of a lower market classification from MSCI, Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo said in Jakarta on 16 October 2026, pointing to a similar assessment of Turkey.
Dradjad said Turkey also faced a potential move out of emerging-market status to either the frontier or standalone category. He drew parallels between MSCI’s scrutiny of the two markets.
According to Reuters, MSCI has put some Turkish equity index changes on hold while allowing more time to assess market reforms. MSCI said insufficient progress by June 2027 could prompt further action, including a consultation on whether Turkey should be reclassified.
Investors have questioned Turkey’s free-float calculations and raised concerns about suspected coordinated trading in some shares. MSCI said institutional investors needed credible, sustained enforcement against such trading, alongside disclosure standards that allow the public shareholding figures for Turkish securities to be checked independently, Reuters reported.
