I Gede Nyoman Yetna, Director of Company Valuation at the Indonesia Stock Exchange (IDX), has addressed mounting market concerns regarding a potential downgrade of Indonesia’s stock market classification by MSCI. These apprehensions arose following the global index provider’s decision to maintain several key policies in its latest index review, sparking fears among investors.
Nyoman emphasized that communication between the IDX and MSCI remains intensive and highly constructive. He highlighted MSCI’s acknowledgment of the significant market transparency reforms implemented by the Financial Services Authority (OJK), the IDX, and the Indonesia Central Securities Depository (KSEI).
“The IDX consistently engages in active discussions with MSCI. Our conversations have been constructive and positive. The latest discussions specifically focused on the comprehensive market reforms already undertaken by OJK, IDX, and KSEI,” Nyoman stated in his official remarks, quoted on Thursday, April 23.
The IDX affirmed its commitment to continuous communication with MSCI over the next two months to proactively address any lingering concerns or questions the index provider may have.
“As per MSCI’s announcement, MSCI is currently conducting an in-depth assessment of the market transparency reforms that have been implemented. Furthermore, MSCI is actively soliciting feedback from its clients and market participants concerning these crucial reforms within the Indonesian Capital Market,” he explained.
In addition to these high-level discussions, Nyoman revealed that the IDX is rolling out public education initiatives and establishing a dedicated “hotdesk.” This special service aims to effectively gather and respond to investor inquiries and feedback, ensuring open and accessible communication channels.
“The IDX will continue to educate the public and market participants regarding the market transparency reforms and address their concerns by providing a dedicated hotdesk. This will facilitate more intensive and accommodative communication,” Nyoman elaborated, underscoring the exchange’s commitment to transparency and investor support.
Regarding the specific risk of a market classification downgrade, Nyoman refrained from issuing a direct statement. However, he pointed to the notably positive market response observed since the reforms were first announced.
“Since the completion of the market transparency reforms was announced on April 2, 2026, we have seen the Jakarta Composite Index (JCI) register an impressive 8 percent increase, climbing from 7,026 points to close at 7,559 points yesterday,” he revealed, presenting tangible evidence of market confidence.
According to Nyoman, this significant surge in the JCI serves as a clear reflection of robust investor confidence in the proactive and comprehensive regulatory reforms undertaken by the authorities.
Earlier, in its latest update, MSCI declared its decision to maintain several existing policies for Indonesian stocks during its May 2026 Index Review. This initial stance was a key factor contributing to the market’s initial anxieties.
These maintained policies included the freezing of increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS), the absence of any new stock additions to the MSCI Investable Market Indexes (IMI), and no changes to existing stock size classifications.
Furthermore, MSCI confirmed its intention to delist stocks categorized under High Shareholder Concentration (HSC). The index provider also stated it would leverage shareholder disclosure data for stakes exceeding 1 percent to precisely adjust its free float estimations, signaling a move towards enhanced market accuracy and fairness.