Indonesia’s main stock index closed higher Thursday after falling early in the session, while MSCI’s proposal to move the country’s indexes out of emerging-market status remained under consultation.
The Jakarta Composite Index gained 1.12% to close at 5,387.94 after opening at 5,247.9 and touching 5,185.52, Vibiz News reported. Detik Finance, citing RTI Business, also reported a 1.12% advance, to 5,387.9. Bloomberg reported in a story carried by Mint that the index had fallen as much as 2.7% earlier in the session.
MSCI opened its consultation Oct. 15 on a proposed reclassification of its Indonesia indexes, from Emerging Market to Standalone Market status. The proposal remains under review. MSCI said it would revisit the plan only if consultation responses demonstrated substantial, verifiable gains in market governance and functioning.
MSCI cited ownership structures that investors could not readily assess, suspected coordinated trading and limited evidence of effective enforcement. The company said investors wanted reforms applied consistently and evidence that they were producing lasting results.
Indonesian authorities have announced measures covering disclosure of shareholders with more than 1% ownership, more granular investor-classification disclosures and High Shareholding Concentration reporting, plus a roadmap toward a 15% minimum free float. MSCI also said it had paused certain changes involving Indonesian index securities, but gave no timetable for lifting the measure.
In June 2026, MSCI said it would consider starting a reclassification consultation if it saw insufficient progress by its November index review. The Oct. 15 announcement opened that consultation.
The proposed shift could prompt multi-billion-dollar outflows, the Associated Press reported. At a Cabinet meeting Oct. 21, Indonesian President Prabowo Subianto said, in the AP’s English rendering, “The Indonesian nation fears no one and will never back down.” The Associated Press reported that government spokesperson Syahganda Nainggolan later characterized the remarks as an invitation to dialogue without pressure or coercion.
Feedback is open until April 30, 2027, and MSCI has set June 30, 2027, as the latest date for its decision.
