MSCI has recently reduced the Information Flow score for the Indonesian stock market, according to a news update from Yuanta Securities.
The decision stems from heightened concerns over transparency, specifically citing the lack of clarity in shareholder structures and evidence of inappropriate trading behaviors. Furthermore, persistent limitations in the country’s foreign exchange market have added to these concerns.
These issues have led to an increased risk that Indonesia could be downgraded from its current position as an Emerging Market to the less prestigious Frontier Market category. MSCI is scheduled to announce its official review result on June 23, 2026 (early morning of June 24 in Thailand).
Should Indonesia face a downgrade, the shift would prompt a positive redistribution of fund flows to other Emerging Markets within the region—including Thailand. This potential reclassification could have significant implications for both regional investment dynamics and Indonesia’s global market standing.
