Indonesia faces possible diminution of emerging market status

S&P DJI has placed Indonesia on a list of markets facing possible reclassification, saying it may first introduce special treatment for Indonesian securities if circumstances worsen. — Bloomberg

JAKARTA: Indonesia’s efforts to reassure global investors suffered another setback after S&P Dow Jones Indices (DJI) signalled the country could eventually lose its emerging market status if concerns over its stock market persist.

The move is likely to deepen scepticism over whether recent reforms have gone far enough to address long-standing investor complaints about transparency, liquidity and the limited amount of shares available for trading in some of Indonesia’s largest companies.