As MSCI review looms, Indonesia’s stock market reforms test investor confidence

[JAKARTA] The Indonesia Stock Exchange (IDX) is set to delist 18 companies by the end of this year as part of a market clean-up effort. The move could test investor confidence even as regulators push ahead with reforms to improve transparency and strengthen the credibility of South-east Asia’s largest equity market.

Analysts said the wave of delistings reflects a necessary step in cleaning up the market, though the process could cause discomfort for investors in the short term.

“Rising delistings can hurt confidence in the near term, especially for retail investors stuck in suspended stocks for too long,” said Mohit Mirpuri, senior partner at SGMC Capital.