TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search results
Popular Reads
Top Results
No results found. Please check your search term and try again
Can't find what you're looking for?
View all search resultsS&P DJI flags risk of frontier market downgrade for Indonesia
The benchmark IDX Composite index fell around 1.4 percent during the first trading session on Wednesday, although this was on a par with the declines recorded for Nikkei and KOSPI in the same period.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
An electronic display board inside the main hall of the Indonesia Stock Exchange (IDX) in South Jakarta shows an overall downward movement across most stocks during the lunch break on Jan. 29, 2026, when the IDX Composite index fell 6.3 percent after global investment firm MSCI raised concerns about free float and trading transparency. (TJP/Deni Ghifari)
S
&P Dow Jones Indices (DJI) has put Indonesia on a watch list for a potential downgrade to frontier market status in its next annual review in 2027.
The New York-based global index provider issued the warning in an announcement on Tuesday, adding it was continuing to monitor developments related to stock ownership transparency and guidance from the Indonesia Stock Exchange (IDX) to address disclosure-related concerns and potential liquidity impact in the country.
“If circumstances worsen, S&P DJI may consider implementing special treatment for Indonesian securities,” reads the announcement.
The index provider added that if these matters remained unresolved one calendar year from the date that special measures were introduced, Indonesia’s market classification was set to be assessed at the 2027 annual review.
In response, newly appointed IDX president director Jeffrey Hendrik said in a statement on Wednesday that the exchange would conduct “constructive communications and discussions” with S&P DJI to understand its concerns and evaluations.
“Together with the OJK [Financial Services Authority] and all stakeholders, IDX will continue to take various measures to address existing concerns. The exchange is committed to taking various efforts to improve transparency and ensure a fair, orderly and efficient capital market,” he said.
Read also: MSCI still has gripes with Indonesian stock market transparency
