MSCI Downgrades Indonesia’s Information Flow Criterion
MSCI announced on 19 June 2026 that it has downgraded Indonesia’s information flow criterion to a negative rating as part of its 2026 Global Market Accessibility Review. The downgrade reflects ongoing investability concerns stemming from transparency issues in the Indonesian market.
The index provider cited opacity in shareholding structures and evidence of coordinated trading behavior, stating that such lack of clarity in ownership data undermines proper price formation and restricts global investors’ ability to assess the true free‑float of listed companies. Additionally, MSCI identified significant foreign‑exchange market limitations, noting the absence of an efficient offshore currency market and constraints within the on‑shore market, with foreign‑exchange liberalisation remaining limited.
MSCI reminded that in January it had already raised transparency concerns and warned that a further downgrade to frontier‑market status could be contemplated. It quantified the potential impact of such a downgrade, estimating that it could trigger capital outflows of up to US$13 billion from Indonesian capital markets.
These findings highlight material barriers for international investors seeking exposure to Indonesia, encompassing both corporate governance transparency and currency market accessibility.