MSCI Maintains Indonesia’s Emerging Market Status Amid Capital Market Reforms

JAKARTA, May 2026 – Morgan Stanley Capital International (MSCI) has officially maintained Indonesia’s status as an Emerging Market in its May 2026 review and did not include Indonesia in the Frontier Market category. The decision drew significant attention from market participants following concerns over transparency and accessibility issues in Indonesia’s capital market.

In its latest announcement, MSCI made no changes to Indonesia’s country classification and continued to position Indonesia alongside other emerging market economies such as China, India, Japan, and South Korea. The decision is considered a positive signal toward the market reform initiatives currently being undertaken by Indonesia’s capital market authorities.

Nevertheless, MSCI implemented significant adjustments to Indonesian equities within its global indices. Six Indonesian stocks were removed from the MSCI Global Standard Index, namely PT Amman Mineral International Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk (AMRT). In addition, several other Indonesian stocks were also removed from the MSCI Small Cap Index.

These changes are expected to affect foreign capital flows related to the impacted stocks, considering that MSCI indices serve as one of the primary benchmarks for global institutional investors and international passive funds.

Previously, Bursa Efek Indonesia (IDX), Otoritas Jasa Keuangan (OJK), and other Self-Regulatory Organizations (SROs) had introduced various reform initiatives aimed at improving market transparency and strengthening corporate governance among listed companies. The measures include enhanced shareholder disclosure requirements and stricter free float regulations to improve market liquidity.

Acting President Director of IDX, Jeffrey Hendrik, expressed optimism that these reforms would help Indonesia maintain its Emerging Market status and strengthen investor confidence in Indonesia’s capital market over the long term.

Source: IDX Channel

Published by:
Dendy Herdian
Communication and Development
Indonesian Issuers Association