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🇮🇩 Indonesia /Economy & Trade

Indonesia Stock Exchange Confident of Retaining Emerging Market Status Amidst Downgrade Rumors

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Indonesia's stock exchange expects the country to retain its Emerging Market status, refuting claims of a downgrade.
  • The exchange is working to restore investor confidence through increased transparency and data granularity.
  • An economist believes Indonesia's stock market decline won't trigger a downgrade, citing governance, liquidity, and transparency as key factors.

Jeffrey Hendrik, acting president director of the Indonesia Stock Exchange (BEI), expressed strong confidence that global index provider MSCI will maintain Indonesia's Emerging Market status. He dismissed circulating screenshots suggesting a downgrade to Frontier Market as false information. "It is incorrect information. Of course, we urge investors to check and cross-check information circulating in the market before making their decisions," Hendrik told reporters in Jakarta on Thursday, June 4, 2026.

It is incorrect information. Of course, we urge investors to check and cross-check information circulating in the market before making their decisions.

— Jeffrey HendrikActing president director of the Indonesia Stock Exchange, addressing claims of a market downgrade.

MSCI is scheduled to announce the results of its Global Market Accessibility Review 2026 on June 18 and its Annual Market Classification Review 2026 on June 23. "Based on the concrete actions we have taken, we have very high expectations that Indonesia will remain in the Emerging Market," Hendrik stated. He noted that the exchange has focused on enhancing transparency, improving data granularity, and providing information on high shareholding concentration to rebuild investor trust.

Meanwhile, Wijayanto Samirin, an economist at Universitas Paramadina, suggested that the recent decline in Indonesia's Composite Stock Price Index (IHSG) would not necessarily lead to a downgrade to Frontier Market. The IHSG plummeted 4.11 percent to 5,941 on Wednesday, June 3, 2026, its lowest level since May 2021, and briefly fell to 5,655 on Thursday morning. It closed Thursday down 1.70 percent at 5,839.78.

Based on the concrete actions we have taken, we have very high expectations that Indonesia will remain in the Emerging Market.

— Jeffrey HendrikExpressing confidence in Indonesia's Emerging Market status.

Wijayanto identified three factors that could lead to a downgrade: governance issues, liquidity problems, and transparency concerns. "I don't think a downgrade will happen anytime soon," he told Tempo on Wednesday, June 3, 2026.

I don't think a downgrade will happen anytime soon.

— Wijayanto SamirinEconomist commenting on the likelihood of Indonesia's market classification being downgraded.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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