JAKARTA - PT Bursa Efek Indonesia (BEI) spoke out regarding the decision of S&P Dow Jones Indices (S&P DJI) to include Indonesia in the Country Classification Watchlist 2027.
In an announcement released on July 7, 2026, Indonesia has the potential to change its status from an Emerging Market to a Frontier Market if a number of aspects of concern have not shown improvement.
The President Director of the IDX, Jeffrey Hendrik, said his party had reviewed the results of the evaluation and understood that Indonesia was now on the monitoring list for the review of market classification in 2027.
"BEI will communicate and have constructive discussions with S&P Dow Jones Indices to delve into the concerns expressed and understand the various aspects of concern in the evaluation process," he said in a statement, Wednesday, July 8.
Furthermore, he said the IDX together with the Financial Services Authority (OJK) and all stakeholders will continue to make various efforts to respond to the concerns conveyed by S&P DJI.
He also emphasized his commitment to increasing the transparency of the Indonesian capital market to create a more fair, orderly, efficient, and integrated market.
For information, in its report, S&P DJI stated that Indonesia is still an emerging market, but is currently under monitoring in line with the development of regulations and capital market transparency.
If the various issues of concern cannot be resolved, Indonesia has the potential to be subject to a Special Measures status or even be reclassified as a Frontier Market in the next evaluation.
S&P DJI explained that the monitoring focus includes transparency of share ownership as well as the implementation of guidelines issued by the IDX to increase information disclosure and maintain market liquidity.
Based on the methodology used by S&P DJI, further evaluation will be carried out if within one year after the implementation of special policies there are still unresolved issues.
In addition to Indonesia, Turkey is also included in the 2027 Watchlist with the potential for a change in status from Emerging Market to Special Measures/Frontier, while Nigeria, which is currently a Standalone Market, is being monitored for a possible rise to Frontier Market.
Meanwhile, Poland remains on the 2026 Watchlist with the potential to be upgraded from an Emerging Market to a Developed Market, while Egypt is still in the consultation phase regarding the possibility of changing the classification from Emerging to Frontier, although it is not on the 2026 or 2027 Watchlist.
This announcement is part of S&P DJI's annual review of global market classifications to ensure that each category reflects regulatory developments, accessibility, and capital market conditions in each country.
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