TEMPO.CO, Jakarta - The global index provider Morgan Stanley Capital International (MSCI) has decided to continue freezing Indonesian stocks in the August 2026 index review. Thus, the freezing of stocks that began in January this year will continue.
In its announcement, MSCI stated that it will continue to freeze increases to all Foreign Inclusion Factors (FIFs) and the number of shares. MSCI will also not add Indonesian stocks to the MSCI Investable Market Index. Furthermore, MSCI will continue to freeze upward migration across all index size segments, including from the Small Cap Index to the Standard Index.
"In addition, MSCI will continue to remove securities designated as having High Shareholding Concentration (HSC) by the Indonesian equity market authorities," MSCI wrote in its announcement on Tuesday, July 7, 2026. MSCI stated that it will continue to use one-percent shareholder disclosure data to adjust free float estimates, if necessary.
This ongoing freezing is a follow-up action by MSCI after Indonesia's status as an emerging market was maintained in the June market classification review. Although MSCI has retained Indonesia's capital market reforms, it will continue to review their implementation until November.
"Although this announcement is a step in the right direction, it is important for international institutional investors that there is consistent implementation and sustainable effects of these measures across the market," MSCI stated in its release on Wednesday, June 24, 2026.
MSCI stated that, if Indonesia's capital market does not show sufficient progress by November 2026, MSCI will consider various options for addressing the situation, including consulting about downgrading Indonesia from an emerging market to a frontier market.
The Chief Executive of the Capital Market Supervisory Agency, Financial Derivatives, and Carbon Exchange of the Financial Services Authority, Hasan Fawzi, denied that MSCI is "suspending" the market classification decision for Indonesia until November 2026. According to him, the notes from MSCI cannot be interpreted as a risk of a downgrade to a frontier market in November.
"That's not true. What there is, is that we are required to consistently and effectively implement it," Hasan told reporters at the Indonesia Stock Exchange on Tuesday, June 30, 2026.
He explained that if, by November, MSCI determines that Indonesia has not consistently implemented its reform agenda, the country will be included on MSCI's consultation list.
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