FTSE Russell has reaffirmed Indonesia's emerging market status, following steps taken by local regulators to improve market transparency.

FTSE Russell said it will continue to closely monitor reforms aimed at strengthening the integrity of Indonesia's capital markets.

"Indonesia has implemented extensive market reforms, including enhanced shareholder disclosure, expanded investor classification categories, setting minimum free-float requirements, and strengthening market monitoring tools," the index compiler said in its annual country classification review of equity markets.

The announcement may ease some concerns that Indonesia could be downgraded, worries that had previously weighed on local assets.

Earlier this year, concerns raised by MSCI Inc. about market investability triggered a stock selloff; since then, global funds have begun to flow back in modestly, and Indonesia's benchmark stock index has recovered some of its losses.

The index is still down about 30% so far in 2026, ranking at the bottom among comparable markets globally.

Indonesian authorities have rolled out a series of reforms to avoid a downgrade of their market status, including raising the minimum free-float requirement to 15%.

FTSE Russell said in August that it would postpone adjustments to some indices involving Indonesian stocks until at least December, to allow more time to assess the effectiveness of the measures taken so far.