Indonesia expected to step up capital market overhauls after MSCI downgrade proposal

Analysts at Maybank Sekuritas Indonesia say authorities will likely introduce further overhauls and strengthen enforcement after MSCI proposed downgrading the country to standalone status. The reclassification could trigger $6 billion in benchmark-related selling, adding to $6 billion in foreign outflows this year. Implementation remains a key challenge. Feedback is due by April 30, 2027; final MSCI decision expected by June 30.