MSCI will confirm Indonesia’s downgrade from Emerging Market to Standalone Market status by 30 June 2027.

On 19 October, Indonesia’s stock exchange temporarily cut the maximum daily share-price decline from 15% to 7% to contain selling. This can delay foreign investors’ exits without resolving MSCI’s concerns about opaque ownership and suspected coordinated trading. MSCI has already said existing reforms lack consistent results and expects to proceed unless regulators demonstrate meaningful improvements. Jakarta also plans to exclude 80 tightly held companies from its benchmark, but changing index membership does not establish stronger enforcement. Bank Central Asia, BRI, Bank Mandiri and BNI account for 71.7% of MSCI Indonesia, exposing their shares to roughly US$2.2 billion of potential index-driven selling. Further selling would depress bank valuations and raise equity financing costs as international funds redirect capital towards other emerging markets.