TEMPO.CO, Jakarta - Liza Camelia Suryanata, Head of Research at Kiwoom Sekuritas Indonesia, believes that market players are now anticipating the results of the Morgan Stanley Capital International (MSCI) and FTSE Russell reviews, especially institutional and foreign investors.
This is reflected in the Rp80 trillion in foreign outflows throughout the year. Nevertheless, Kiwoom Sekuritas is optimistic that Indonesia's status will not be downgraded from an "emerging market" to a "frontier market."
According to Liza, what investors are waiting for is not simply whether Indonesia remains an emerging market, but rather whether MSCI and FTSE will provide additional notes regarding market accessibility, regulatory certainty, investor protection, and the independence of market mechanisms.
"Therefore, this year's review has greater psychological weight than previous years," she said in a written statement on Thursday, June 18, 2026.
Liza believes there are three main issues that pose a risk to MSCI and FTSE's assessments of Indonesia. First, market accessibility and ease of investment. She explained that foreign investors are particularly concerned about ease of market entry and exit, transaction processes, settlement, short selling, securities lending, and market operational efficiency.
The second issue is policy certainty, which Liza explained that while global investors are generally receptive to policy changes, they are highly sensitive to sudden policies that involve minimal market consultation or have the potential to alter market mechanisms.
The third issue is governance and market confidence. In recent months, Liza said, there have been various discussions about the growing role of the state in financial markets, including through various policy initiatives and strategic investment institutions.
"For foreign investors, the most important thing is not who the actors are, but whether market mechanisms remain transparent, competitive, and predictable," she said.
MSCI is scheduled to announce its Global Market Accessibility Review early Friday, June 19, 2026, Indonesia time. The results of the FTSE Russell rebalancing are scheduled to take effect on June 22, 2026. MSCI will announce its Annual Market Classification Review on June 24, 2026.
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