Global index provider MSCI has extended its review of Indonesia's status as an "emerging" markets economy, pushing the next decision point to November.
The firm indicated it may consider options including a reclassification to frontier status, leaving the world's worst-performing major stock market of 2026 in limbo.
The Jakarta Composite Index (IHSG) is set to open higher on Monday, buoyed by a surge in global risk appetite and technical indicators pointing to a reversal in local market momentum.
The index has been under pressure for months, weighed down by currency volatility and concerns over capital outflows.
A downgrade to frontier status would trigger significant outflows from passive funds tracking MSCI's emerging market indices.
The November timeline gives Jakarta time to address structural concerns, but the threat of reclassification continues to hang over the market.