Analyst: Despite facing evaluation, Indonesia may retain its MSCI Emerging Markets status.

Jeffrosenberg Chen Lim of Maybank Sekuritas stated in an email that despite the latest assessment by the index provider, it is expected that Indonesia will retain its emerging market status in the MSCI Emerging Markets index. MSCI pointed out more concerns about the Indonesian market, including limited equity structure transparency and signs of collusion trades disrupting fair pricing. MSCI's focus seems to have shifted from technical market access issues to trust and governance issues, which are often more difficult and time-consuming to address. Even if Indonesia avoids a downgrade, it may still be closely monitored until regulatory authorities show significant improvements in transparency, disclosure standards, and market regulation.