Economic Information Daily news agency reported on the 16th that index provider MSCI said on Thursday (15th) that Indonesia no longer possesses emerging market status and is holding consultations to reclassify Indonesia as a 'standalone market'. This implies Indonesia may be removed from global stock indices, representing a significant setback for Indonesian President Prabowo, who is striving to attract global investment inflows.

    Concerns over the integrity of the Indonesian market have been deepening. MSCI stated that merely downgrading Indonesia to a 'frontier market' would not sufficiently reflect the severity of the country's market issues. Unless MSCI finds clear evidence of substantial improvements in market governance and operations, it will continue to advance this change.

    Although Indonesian authorities have announced relevant reform measures, MSCI said in a statement: 'Significant concerns about operational failures in the Indonesian market persist, including ongoing suspected collusive trading activities and a lack of substantive evidence of effective enforcement.'

    The 'standalone market' classification applies to markets that do not meet MSCI's inclusion criteria for either emerging or frontier market indices. Markets such as Argentina, Lebanon, and Palestine are currently classified under this category. (rc)