Published Wed, Apr 8, 2026 · 10:06 AM
[SINGAPORE] FTSE Russell will “closely monitor” Indonesia’s capital market reforms after the postponement of a March index review of the nation’s equities, as regulators seek to avert a possible downgrade by MSCI.
The index compiler said that it is not considering Indonesia for inclusion on the watch list and the country’s Secondary Emerging market status remains unchanged, according to its statement.
“FTSE Russell will confirm the treatment of Indonesian securities ahead of the June 2026 index review, taking into account reform progress and stakeholder input,” it said.
The decision puts further pressure on Indonesian authorities to improve transparency after MSCI’s warning in January triggered one of the worst sell-offs in the nation’s stock market in decades. Local shares have fallen more than 19 per cent since the start of the year, making them the world’s worst performers.
FTSE in February excluded Indonesian stocks from its periodic index review for inclusion or exclusion of stocks due to the risk of adverse turnover and uncertainty in determining public float amid the ongoing reforms by regulators.
Indonesia has carried out a series of initiatives to address MSCI’s concerns, including a stock exchange ruling last week requiring listed companies to raise their public float to at least 15 per cent within three years.
On Thursday, the bourse disclosed the names of companies with shareholding concentrations of more than 95 per cent, including those owned by the country’s richest tycoons. BLOOMBERG
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