S&P Dow Jones Indices said on July 7 that Indonesia remains classified as an emerging market but has been added to its 2026/2027 country-classification watchlist. The country is being monitored for a possible reclassification to Special Measures or Frontier.
S&P DJI said the monitoring is focused on regulatory developments related to stock-ownership transparency. It cited guidance issued by the Indonesia Stock Exchange that is intended to address disclosure-related issues and possible liquidity effects, and said it continues to track those developments.
The index provider said that if conditions deteriorate, it may apply special treatment to Indonesian securities. Under its methodology, if the relevant issues remain unresolved one calendar year after special measures are introduced, Indonesia’s classification would be assessed at the next annual review. It also said watchlist inclusion is a forward-looking monitoring step and is not required before any future reclassification consultation.
S&P DJI said country classification decisions combine quantitative and qualitative criteria with investor feedback, and that changes for developed, emerging or frontier status are typically implemented in September of the following year with at least nine months’ notice. Indonesia represented 1.68% of the S&P DJI Emerging Markets Index as of May 15, 2026. The action follows earlier accessibility concerns raised by MSCI about Indonesia’s shareholding transparency and market structure.