MSCI Proposes Downgrading Indonesia to Standalone Market Status

04:58 AM EDT, 10/16/2026 (MT Newswires) -- MSCI (MSCI) proposed reclassifying Indonesia from emerging to standalone market status, citing concerns over market transparency, suspected coordinated trading and weak enforcement of reforms, the index provider said Thursday. The company said it may proceed with the reclassification unless clear improvements in market governance emerge, despite planned reforms on shareholder disclosures and free float requirements. MSCI will maintain its freeze on certain changes to Indonesian securities in its indexes until further notice, it said. The restrictions include new additions to the MSCI Indonesia Investable Market Index, increases in foreign inclusion factors or shares outstanding, and upward moves between index size segments. MSCI said it is accepting feedback on the proposal through April 30, 2027, and plans to make a final decision by the end of June 2027.