Indonesia Keeps FTSE Secondary Emerging Market Status

FTSE said it will continue monitoring market developments and stay in communication with market participants, but it did not put Indonesia on a watch list. The index provider said it is still assessing the effectiveness of reforms by Indonesian authorities, including deeper shareholder disclosure, more granular investor data categories, higher minimum free-float requirements and stronger market surveillance.

For investors, the result is an important reprieve rather than a final verdict. FTSE has already delayed some index adjustments for Indonesian stocks in its March, June and September 2026 reviews, and it plans another update before the December 2026 evaluation.

The announcement lands as Indonesia tries to reassure global index compilers that reforms are improving market integrity and investability. Bursa Efek Indonesia has rolled out more disclosure around holders of more than 1% of shares, expanded investor classifications from 9 to 39 categories, published concentration reports and begun phasing in a higher free-float rule from 7.5% to 15% over three years.

Other market tweaks, including the removal of the Rp50 floor on share prices and the launch of short selling in selected stocks, are part of the same effort to make the market more accessible and better aligned with global standards. Those changes are aimed at reducing the transparency and liquidity concerns that have weighed on international sentiment.

The next test comes in November, when MSCI is due to issue its own review. A positive ruling from the larger index compiler would do more to support foreign inflows into Indonesia’s benchmark than the FTSE decision alone, while any disappointment could revive fears of slower allocations from global funds.