TEMPO.CO, Jakarta - Indonesia Stock Exchange (IDX) is communicating with the global index provider S&P Dow Jones Indices (S&P DJI) regarding the potential downgrade of Indonesia's stock market status from an emerging market to a frontier market.
IDX Director of Trading and Member Regulation, Irvan Susandy, stated that the exchange will discuss with S&P similar to those with Morgan Stanley Capital International (MSCI) and FTSE Russell.
"So far, this morning, I checked, we are still waiting for their response, so we have made contact, but we are still waiting for the response from S&P," Irvan told reporters at the Indonesia Stock Exchange, Jakarta, on Wednesday, July 8, 2026.
He mentioned that the stock exchange is continuing to implement capital market reform measures ranging from minimum free float requirements to disclosure of stocks with high ownership concentration.
Irvan stated that, despite the implementation of all proposed capital market reform measures, the exchange authorities continue to discuss various tangible actions to reassure the market that genuine improvements are being made. However, he noted that some new policies may only yield results after one to three years, such as the targeted completion of the free float by 2029.
In relation to the potential downgrade, Irvan stated that IDX will continue to do its best to ensure Indonesia remains an emerging market. "Various concerns that are currently raised, we take as a positive indication that we will make improvements regarding these concerns. So we hope that investors will remain confident that we will continue to manage this exchange well and we are confident that IDX can continue to grow even larger than before," he said.
In its announcement, S&P DJI included Indonesia on its watchlist for a 2027 review. Currently, Indonesia still holds the status of an emerging market. However, S&P DJI is considering applying special treatment to Indonesian stocks and potentially reclassifying them as frontier markets.
S&P DJI stated that they continue to monitor the transparency of stock ownership in Indonesia, as well as the guidelines issued by IDX to address these issues. "If the situation worsens, S&P DJI may consider applying special treatment to Indonesian securities," they wrote in the announcement on Wednesday, July 8, 2026.
According to the country classification methodology of S&P DJI, if the issues remain unresolved one year after the implementation of special treatment, the classification of the Indonesian market will be evaluated during the next annual review.
Read: S&P Dow Jones Adds Indonesia to Market Reclassification Watchlist
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