UOB Kay Hian: Indonesia is expected to retain its MSCI Emerging Markets status, which is favorable for market evaluation or could boost the market

(1) The UOB Kay Hian Indonesia research team stated that in the upcoming MSCI assessment in June, Indonesia is likely to retain its emerging market status. (2) In late January this year, MSCI pointed out that Indonesia faced investability issues, which could lead to a downgrade to “frontier market” status. Although the Indonesia Stock Exchange has implemented reforms to improve transparency and free float, MSCI may continue to monitor market accessibility. (3) A favorable assessment outcome would serve as a near-term catalyst to reignite foreign investor interest and have a positive impact on the Indonesian market.