Morgan Stanley Capital International (MSCI) has confirmed that Indonesia will retain its emerging market classification, despite removing six Indonesian stocks from its Global Standard Index during the May 2026 rebalancing.
Key points
- OJK (Otoritas Jasa Keuangan) stated that the removal of specific stocks is part of a routine index provider cycle.
- The OJK reported that the Jakarta Composite Index (IHSG) decline following the announcement remains within a normal range.
- Market reforms aimed at increasing transparency in share ownership structures led to the index adjustments.
- A further update on Indonesia's market status is expected during the Market Accessibility Review in June 2026.
Why it matters
The decision confirms Indonesia's continued credibility as an emerging market, while the index adjustments reflect ongoing efforts to improve transparency and data accuracy in the domestic capital market.
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