MSCI seeks feedback on proposed change to Indonesia’s market status
A final decision is due by 30 June 2027, while FTSE Russell continues to classify Indonesia as a Secondary Emerging Market.
MSCI has begun consulting investors on a proposal to move Indonesia’s equity market from Emerging Market to Standalone Market status. The consultation opened on 15 October 2026, with responses accepted until 30 April 2027 and a final decision scheduled no later than 30 June 2027.
Indonesia Stock Exchange development director Iding Pardi said MSCI’s concerns centred on transparency, integrity and investability. He said trading liquidity, investor numbers and listed-company fundamentals were still growing. The proposed reclassification remains subject to consultation and MSCI’s assessment.
Exchange data dated 19 October 2026 put Indonesia’s equity market capitalisation at US$497.96 billion. Indonesia had 9 constituents in the MSCI Standard Index, compared with a minimum requirement of three stocks in MSCI’s classification framework.
Share ownership disclosure remains an area of concern, including the quality of ownership information and investors’ access to sufficient data. Indonesia has expanded monthly reporting to cover holdings above 1% and strengthened disclosure through the High Shareholding Concentration mechanism, whose list contained 80 stocks.
Regulators are also encouraging a larger proportion of shares to be available for public trading. The exchange data put Indonesia’s free float at 15% and indicated that trading continued normally, with market liquidity available.
Separately, FTSE Russell has retained Indonesia’s Secondary Emerging Market classification without placing it on its Watch List. Its monitoring covers shareholder disclosure, the detail of investor classifications, minimum free-float rules and market surveillance tools.
