MSCI Considers Downgrading Indonesia to "Standalone Market"

MSCI said on October 15 local time that Indonesia no longer qualifies for classification as an emerging market, and the country could as a result be removed from its global equity indexes. MSCI is seeking public feedback on a proposal to reclassify Indonesia as a "standalone market." MSCI said that downgrading Indonesia to "frontier market" status would not adequately reflect the severity of problems in the country's market. Unless there is clear evidence of substantive improvement in market governance and market functioning, MSCI expects to proceed with this adjustment. (Sina Finance)