Capital Economics: Indonesia still faces the risk of losing its emerging market status

Golden Ten Data reported on June 29 that economists at Capital Economics stated in a report that Indonesia faces the risk of being downgraded from its current emerging market status to frontier market if no significant progress is made in addressing MSCI's transparency concerns. The index provider recently postponed its decision regarding Indonesia's status until November. "MSCI appears not to have downgraded immediately, but instead has given more time to assess the impact of reform measures introduced by financial regulators to address its concerns," these economists said. Many issues, such as providing greater market access to foreign investors, still need to be resolved before November.