FTSE Russell Keeps Indonesia's Emerging Market Status

By Ying Xian Wong

Index provider FTSE Russell maintained Indonesia's secondary emerging market status as it continues to assess the nation's capital market reforms.

The decision on Wednesday follows the postponement of certain index changes for Indonesia at the March, June and September index reviews, as FTSE Russell continues to assesses whether recent reforms can support an orderly return to standard index review processes.

The Jakarta Composite Index rose 0.1% to 6154.97 on Thursday, bringing year-to-date losses to 29%.

Indonesia has implemented measures including enhanced shareholder disclosures, broader investor classifications, minimum free-float requirements and improved market surveillance tools to address concerns over data transparency and index replicability, FTSE Russell said.

FTSE Russell said it will provide an update on the treatment of Indonesian securities ahead of its December index review, taking into account reform progress and feedback from stakeholders.

Indonesia isn't being placed on a watch list, FTSE said, adding that it will continue monitoring market developments.

The FTSE announcement is a relief for the Indonesian market, as keeping Indonesia off the watch list makes a near-term downgrade unlikely. However, the risk hasn't gone away, said iFAST research analyst Kok Jun Yong.

The bigger focus now is MSCI's November review, where a move to frontier-market status remains possible, he said.

Indonesia's stock market has been under pressure following MSCI's warning in January of a potential downgrade to frontier from emerging-market status, citing concerns over investability and transparency. That warning triggered an $80 billion selloff.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

October 07, 2026 22:41 ET (02:41 GMT)