S&P Dow Jones puts Indonesia on watchlist for market reclassification
NEW YORK, July 23. S&P Dow Jones Indices has placed Indonesia's equity market on a watchlist for potential reclassification, the index provider disclosed, pointing to shareholding transparency as the central concern. The action puts S&P Dow Jones alongside other organizations that have already raised alarms about the south-east Asian market.
Key takeaways
- S&P Dow Jones Indices has placed Indonesia's equity market on a watchlist for potential reclassification.
- The index provider named shareholding transparency as the central concern behind the watchlist placement.
- The watchlist designation puts Indonesia's current market classification under formal review.
- S&P Dow Jones joins other organizations that have already raised similar warnings about Indonesia's market.
- The disclosure was announced from New York on July 23.
NEW YORK, July 23. S&P Dow Jones Indices has placed Indonesia's equity market on a watchlist for potential reclassification, the index provider disclosed, pointing to shareholding transparency as the central concern. The action puts S&P Dow Jones alongside other organizations that have already raised alarms about the south-east Asian market.
Shareholding transparency the named issue
S&P Dow Jones cited issues with shareholding transparency in Indonesia. The index provider's watchlist designation puts Indonesia's current market classification under formal review.
Shareholding transparency relates to how clearly ownership stakes in listed companies are recorded and accessible to investors. That question, according to S&P Dow Jones, is what prompted the watchlist placement.
Warnings building across the industry
Other organizations have raised similar flags about Indonesia's market ahead of the S&P Dow Jones action. The index provider now joins that group, and the accumulation of warnings from multiple industry participants increases the weight of scrutiny on Indonesia's shareholding disclosure practices.
Shareholding transparency remains the shared thread across those concerns.