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MSCI Flags Transparency Concerns in Indonesia, Downgrades Information Flow Criterion
The index provider said opacity in ownership data and coordinated trading signs are undermining price formation and limiting investors’ ability to assess free float.
- On Thursday, June 18, 2026, MSCI downgraded Indonesia's information flow criterion to negative in its 2026 Global Market Accessibility Review, citing persistent opacity in shareholding structures and signs of coordinated trading behavior.
- Previous transparency concerns spurred reforms including doubling minimum free floats for listed companies to 15%, an action taken after top regulatory executives resigned following January warnings.
- Citing impacts on price formation, MSCI stated these issues "materially limit international institutional investors' ability to assess true free float," as the Jakarta Composite Index has lost almost 30% this year.
- A potential reclassification to frontier status looms next week, a move that could trigger up to $13 billion in capital outflows from passive, index-tracking funds.
- President Prabowo Subianto faces scrutiny over fiscal policies that widened the deficit toward 3%, while rupiah depreciation to record lows forced Bank Indonesia to hike interest rates in recent weeks.
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11 Articles
11 Articles
MSCI flags transparency concerns in Indonesia, downgrades information flow criterion
MSCI downgraded Indonesia's information flow criterion to negative due to limited transparency in shareholding structures and market data, hindering global investors' ability to assess listed companies.
·India
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MSCI downgrades Indonesia's information flow criterion on transparency concerns
·New York, United States
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MSCI downgrades Indonesia’s transparency criterion
Indonesia’s capital markets have plunged since MSCI in January flagged transparency concerns and warned of a downgrade to frontier status from emerging. (EPA Images pic) JAKARTA: MSCI on Thursday downgraded Indonesia’s information flow criterion to negative, as it reiterated concerns around transparency in shareholding structures and signs of coordinated trading in the country’s stock market, in its 2026 Global Market Accessibility Review. Indon…
·Kuala Lumpur, Malaysia
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Coverage Details
Total News Sources11
Leaning Left3Leaning Right1Center6Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 30%
C 60%
Factuality
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