S&P Dow Jones Indices has placed Indonesia on its watchlist for a potential market reclassification review in 2027.
The global index provider confirmed the decision, noting that the country remains classified as an emerging market but is now under active consideration for status changes.
This development marks a significant step in Indonesia’s ongoing efforts to align its capital markets with international standards.
The inclusion on the watchlist is driven by S&P’s monitoring of Indonesia’s progress in enhancing transparency regarding share ownership.
The index provider is specifically evaluating guidance issued by the Indonesia Stock Exchange (IDX) aimed at resolving opacity in beneficial ownership structures.
For investors, a successful reclassification could trigger substantial inflows from index-tracking funds, although the process remains conditional on regulatory reforms.