Business · Companies · 1 hr ago
Indonesia’s Market Reforms Take Focus Before MSCI Index Review
MSCI is due to announce its November index review on Thursday, November 12, 2026.
It has frozen new additions to its Indonesia index and promotions to higher segments, though removals and downgrades remain possible.
Indonesia’s stock exchange plans to meet MSCI this week to discuss reforms it has made.
The exchange says it is working to improve information, disclosure, oversight and law enforcement with the Financial Services Authority.
A downgrade to standalone market status could prompt foreign investors to sell, but that change is only a possibility for the second quarter of 2027.
Bank Danamon’s chief economist estimates potential outflows at US$2 billion to US$6 billion if that downgrade happens.
Any index changes are scheduled to take effect on November 30, after MSCI’s announcement.
MSCI is due to announce the results of its November index review on the morning of November 12, 2026.
Indonesia’s stock exchange plans to meet MSCI this week to discuss market reforms.
MSCI has frozen additions of new stocks to the Indonesia Investable Market Index and promotions to higher segments, while deletions and moves to lower segments remain possible.
Index composition changes are scheduled to take effect at the close of trading on November 30.
An economist at Bank Danamon estimated that a downgrade of Indonesia to standalone market status in the second quarter of 2027 could prompt US$2 billion to US$6 billion in foreign outflows.
- Who
- The Indonesia Stock Exchange and MSCI. Bank Danamon economist Irman Faiz estimated potential outflows.
- What
- The exchange plans to discuss market reforms with MSCI ahead of its November index review.
- When
- The review results are due November 12, 2026; changes are scheduled for November 30.
- Where
- Indonesia.
- Why
- The exchange says it will discuss reforms it has made. MSCI’s review may affect index composition and market classification.
This story does not have two clearly opposing sides.
Irman Faiz said potential outflows could reach US$2 billion to US$6 billion if Indonesia were downgraded to standalone market status.
The Indonesia Stock Exchange planned to meet MSCI to discuss market reforms.
MSCI was scheduled to announce the results of its November index review.
Changes to index composition were scheduled to take effect at the close of trading.
Indonesia could be downgraded to standalone market status, according to the scenario cited in the article.
- Review announcement
- November 12, 2026
- Index changes take effect
- November 30, 2026, at market close
- Stocks and promotions
- MSCI has frozen additions of new Indonesian stocks and promotions to higher segments
- Possible outflows
- US$2 billion to US$6 billion
- Possible downgrade period
- Second quarter of 2027
What people are saying
We are focusing on the reforms we have undertaken. The MSCI announcement is entirely within their authority.
We see potential outflows from the stock market of between US$2 billion and US$6 billion, comprising both active and passive funds.