Indonesia is intensifying efforts to overhaul its capital market framework in a bid to prevent a potential downgrade by global index provider MSCI.
The push comes as the country faces a pivotal review of its status as an emerging market economy, with the next decision point scheduled for November.
Authorities are treating the reform agenda with urgency, recognizing that a reclassification could trigger significant outflows from passive and active foreign funds.
The government is focusing on removing structural barriers that have historically limited foreign investor access and participation in Indonesian equities.
MSCI has previously indicated it may consider options including a reclassification if progress on market accessibility stalls.
The index provider extended its current review period, signaling that while the threat of a downgrade persists, there is still a window for Jakarta to demonstrate meaningful improvements in market infrastructure and regulatory alignment.