LONDON: FTSE Russell has reaffirmed the emerging-market status of Indonesian equities amid measures taken by local authorities to improve transparency.
FTSE said it will continue to closely monitor capital market integrity reforms in the country.
“Indonesia has implemented a broad range of market reforms, including enhanced shareholder disclosure, expanded investor classification categories, minimum free float requirements, and enhanced market surveillance tools,” the index compiler said in its annual equity country classification review.
The announcement is likely to ease some worries about a potential market downgrade that have weighed on local assets.
The stock benchmark pared some losses as global funds trickled back after a sell-off earlier this year sparked by MSCI Inc’s concerns over market investability.
The gauge remains down 30% for 2026, ranking it at the bottom among global peers. Indonesian authorities have implemented a series of reforms to avert a market-status downgrade, including raising minimum float requirements to 15%. The FTSE will defer certain index changes for local stocks until at least December. — Bloomberg
