S&P Dow Jones Indices has announced it is closely monitoring developments regarding equity transparency in the Indonesian stock market and will proceed with its scheduled quarterly index review in March. This decision comes despite competing index providers having paused their own assessments.

In an emailed statement, S&P Dow Jones Indices stated it is watching recent developments, including new guidance issued by the Indonesia Stock Exchange. The company added that its index review scheduled for March 2026 will follow the "standard procedure" outlined in its existing methodology.

This stance creates a clear distinction between S&P Dow Jones and its peers, MSCI and FTSE Russell. The latter two have intensified their scrutiny of the Indonesian market due to concerns over high ownership concentration and opaque shareholding structures, which could lead to an overestimation of free-float shares—the portion of stock available for public trading. Indonesian regulators are under pressure to restore market credibility, especially after MSCI warned last month that Indonesia risks a downgrade to frontier market status. Concurrently, fears of a sovereign credit rating downgrade have also dampened investor sentiment.

According to Nirgunan Tiruchelvam, an analyst at Aletheia Capital, "S&P Dow Jones' move suggests that Indonesian authorities may be making progress in meeting the requirements of index providers. The hope is that they will continue to swiftly address issues related to opaque ownership structures and free-float shares."

Last week, FTSE Russell announced it would postpone its scheduled March review of the Indonesian market, citing risks of abnormal trading volatility and uncertainties surrounding free-float calculations. The review has been rescheduled for June. This follows a prior warning from MSCI regarding the investability and accessibility of the Indonesian market, with an assessment to be completed by May. MSCI's initial warning triggered the largest sell-off in nearly three decades in Southeast Asia's biggest economy.

Since last month's market plunge, Indonesian regulators have pledged reforms aimed at enhancing market transparency and liquidity. Specific measures include doubling the minimum free-float requirement to 15% and tightening disclosure standards. The Indonesia Stock Exchange and related regulatory bodies have also completed a leadership transition.