MSCI said on Monday it will extend its review of Indonesia’s stock market by a month to June to assess reforms announced by the Southeast Asian nation, after a warning in January triggered a market rout and a foreign investor exodus.
The global index provider had warned that Indonesia could be downgraded to “frontier” market status from “emerging” as a result of transparency problems.
That has led to Jakarta’s stocks tumbling 12 per cent this year, making it the worst-performing major stock market in Asia, and foreigners selling roughly $2.3 billion worth of stocks on a net basis.
MSCI said it was reviewing the new data sources and regulatory measures announced by Indonesia’s financial authorities, adding it would provide further updates in a June review.