MSCI retained Indonesia's Emerging Market status during its June 2026 market-classification review but extended its review until November 2026. The index provider downgraded assessments related to information flow and foreign-exchange market accessibility for Indonesia.

MSCI lowered Indonesia's information flow criterion to negative in its annual Global Market Accessibility Review, citing structural issues in the opacity of shareholding structures and concerns about coordinated trading. The firm stated that if progress is insufficient by its November review, it will consider options for treating the Indonesian market, potentially including a consultation on reclassifying Indonesia from Emerging Markets to Frontier Markets.

The Indonesian government has mandated disclosure for shareholders holding at least a 1 percent stake in a company, a reduction from the previous threshold of 5 percent. The government also doubled the minimum free float for listed companies from 7.5 percent to 15 percent. MSCI acknowledged that recent announcements by Indonesian authorities represent a step in the right direction but stated that consistent implementation and sustained effect of measures across the market are what matters for international institutional investors.

Law No. 4 of 2026 amended Indonesia's Financial Sector Development and Strengthening Law (P2SK). This legislation allows individuals and legal entities, including non-exchange members, to hold shares in the Indonesia Stock Exchange (IDX). The law also permits the Indonesian government, through the Ministry of Finance, Bank Indonesia, and the sovereign investment vehicle Danantara, to become shareholders in the exchange.

In 2002, a study by international institutions on exchange demutualization concluded that the existing non-profit model of the Indonesia Stock Exchange was no longer adequate for a market increasingly exposed to global financial shocks. The IDX currently operates under a mutual ownership model where brokerage firms using the exchange are also its owners.

Between late 2025 and April 2026, the market value of Indonesia's ten largest listed companies declined by more than 25%, erasing approximately 1.6 quadrillion rupiah (US$89 billion) in capitalization. The Indonesian rupiah has depreciated by over 14 percent since October 2024. The Jakarta Stock Exchange Composite closed down 3.40% on June 9, 2026, and closed up 2.48% on June 10, 2026.