MSCI suspends Indonesia index adjustment, citing fundamental investability issues

Glonghui, January 28th｜MSCI will suspend certain index adjustments for Indonesian companies until the country's regulators address concerns over the high concentration of shareholdings in listed companies. This move deals another setback to the largest market in Southeast Asia. In a statement, the institution said that due to the continued presence of "fundamental investability issues" in the Indonesian market and concerns from regulators about coordinated price manipulation, it will immediately suspend all new inclusions of Indonesian companies in relevant indexes and freeze adjustments to the number of free-floating shares. If Indonesia fails to make sufficient progress in improving transparency by May, MSCI will reassess the market accessibility level of the country—a move that could result in all Indonesian companies having their weights in the MSCI Emerging Markets Index downgraded, or even being reclassified to the Frontier Markets category.