The Indonesia Stock Exchange, known as BEI, said on Friday it will ask Morgan Stanley Capital International for further clarification on the basis of a proposal to downgrade Indonesia’s equity market. MSCI opened the consultation on 15 October 2026. The proposal would move the market from emerging market status to standalone market status.
Concerns over investability and governance
MSCI cited investability and governance concerns in proposing the change. Those include non-transparent share ownership structures, ownership concentration and alleged coordinated trading practices. MSCI also keeps a freeze on certain changes to Indonesian index constituents, the foreign inclusion factor and shares outstanding until further notice.
Jeffrey Hendrik, the president director of BEI, said the exchange would request more detail on the reasoning behind the announcement. He said the exchange had taken various reform steps into account.
Feedback deadline and final decision
Market participants have until 30 April 2027 to submit feedback to MSCI. The index provider has scheduled its final decision for no later than 30 June 2027.
The announcement is a consultation rather than a final decision.
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Source: Indonesia Stock Exchange
