MSCI Proposes Downgrading Indonesia to Standalone Market Status

Key Facts

1MSCI has proposed downgrading Indonesia's classification from Emerging Market to Standalone Market status.

MSCI has proposed downgrading Indonesia's classification from Emerging Market to Standalone Market status. Investing.com reported that the index provider has launched a consultation to potentially remove the country from the MSCI Emerging Markets Index.

The proposal follows concerns regarding market accessibility, liquidity, or regulatory frameworks that may no longer meet Emerging Market standards. A downgrade to Standalone status would likely trigger significant forced selling by passive funds that track MSCI Emerging Market indices as they adjust their portfolios.