MSCI postponed its review of Indonesia's market status until November 2026. The index provider stated it needs more time to assess whether recently announced transparency reforms in Indonesia are effective.

MSCI identified several positive steps taken by Indonesia, including enhanced disclosures, more granular investor classification, and a roadmap to raise the minimum free-float requirement to 15%. However, MSCI stated that consistent implementation and sustained effect of reforms matter for global investors. The index provider flagged a potential downgrade of Indonesia to frontier status in January due to investability concerns and limited shares available for public trading. MSCI said, "Should sufficient progress not be evident by the time of the November 2026 MSCI index review, MSCI will consider a range of options for the appropriate treatment for the Indonesia market, potentially including a consultation on the reclassification of Indonesia from emerging markets to frontier markets."

Mohit Mirpuri, a partner at SGMC Capital Pte, said the market retains emerging market status, "but with a warning label attached." Mirpuri added, "The burden is now on regulators to demonstrate credible progress over the coming months." MSCI revised Indonesia's assessment on information flow to negative in its annual accessibility review. The reasons cited for this negative assessment included limited transparency in shareholding structures, coordinated trading behavior that undermines price formation, and a lack of corporate disclosure in English.

The Jakarta Composite Index dropped approximately 30% this year. Overseas investors sold $4 billion of Indonesian equities this year, and the Indonesian rupiah weakened more than 6% against the US dollar. Yi Ping Liao, a fund manager at Franklin Templeton, commented that "the macro is clearly quite challenged." Liao also stated, "I still think that there are things that need to be worked out, and until then, I don't think that there's a very strong case to be in Indonesia."