Several international media outlets highlighted Morgan Stanley Capital International’s (MSCI) decision to once again postpone its review of Indonesia’s market classification until November 2026. For the time being, Indonesia retains its status as an emerging market.

According to Reuters, as cited by Singapore-based CNA in an article titled "Indonesia clings to emerging markets mantle as MSCI extends review to November", the latest announcement initially triggered a brief recovery rally in the market. Nevertheless, the report noted that concerns surrounding Indonesia’s market outlook remain largely unresolved.

CNA stated that investor sentiment is likely to remain subdued in a market that has shifted from being a favorite destination for investors to one that is increasingly viewed with caution. The report also pointed out that since January, Indonesia has introduced a range of measures aimed at addressing some of the concerns previously raised by MSCI.

The article also quoted Mohit Mirpuri, an analyst at Singapore-based SGMC Capital. He said that MSCI’s decision to extend the review period was a more favorable outcome than many market participants had feared. Mirpuri emphasized that MSCI stopped short of launching a frontier market consultation and explicitly acknowledged the reforms that Indonesia has implemented.

According to him, MSCI’s overall message was constructive, although it remained conditional. He further argued that the risk of a market downgrade has not disappeared but has merely been postponed. In his view, pressure from MSCI is likely to persist, which could keep some foreign investors cautious toward the Indonesian market.

The development also received special coverage from CNBC International. In its article titled "MSCI keeps South Korea as emerging market, delays Indonesia review amid downgrade risk", CNBC not only discussed MSCI’s decision regarding South Korea but also highlighted Indonesia’s situation.

The report stated that the continued review of Indonesia followed MSCI’s earlier concerns about market accessibility, which were raised at the beginning of the year. It also noted that MSCI froze Indonesian stocks within its indices in January due to concerns regarding market investability.

Furthermore, MSCI indicated that it would continue assessing the reforms undertaken by Indonesian authorities. However, if those measures are ultimately deemed insufficient, the index provider may consider a range of options regarding the appropriate treatment of Indonesia’s market, including the possibility of downgrading the country to frontier market status.