MSCI has delayed its decision regarding Indonesia’s emerging market status to November, increasing uncertainty for investors. The review now includes the possibility of a downgrade to frontier market status, a significant demotion. This extension follows concerns regarding the accessibility of the Indonesian stock market. A downgrade could trigger substantial capital outflows, exacerbating the current poor performance of the Indonesian stock market, which is already the worst-performing major market this year. MSCI will continue to assess the situation, focusing on factors impacting market accessibility for foreign investors. The decision will be crucial for Indonesia’s investment landscape and economic outlook.