{"text":[[{"start":7.5,"text":"S&P Dow Jones Indices has warned of a possible downgrade of Indonesia to a frontier market, following rival index provider MSCI in raising concerns about transparency of shareholdings in south-east Asia’s largest economy."}],[{"start":22.7,"text":"S&P DJI has placed Indonesia, along with Turkey, on a watchlist for a potential downgrade in its next review in 2027, it said on Tuesday. Both countries are currently classified as emerging markets."}],[{"start":37.4,"text":"The index provider said it would continue to “track developments related to stock ownership transparency” and monitor the Indonesian stock exchange’s progress in addressing concerns."}],[{"start":47.849999999999994,"text":"“If circumstances worsen, S&P DJI may consider implementing special treatment for Indonesian securities,” it said."}],[{"start":54.99999999999999,"text":"If its concerns remain unaddressed one year from the date S&P DJI implements special measures, Indonesia’s market classification will be assessed at its next annual review, the index provider said."}],[{"start":67.35,"text":"S&P DJI’s announcement follows a similar warning from MSCI, which is also reviewing Indonesia’s classification as an emerging market."}],[{"start":77.75,"text":"That warning in January prompted a flood of outflows from Indonesian equities. The Jakarta Composite index has declined 31 per cent, making Indonesia the world’s worst-performing stock market this year."}],[{"start":90.85,"text":"The index was down 1 per cent on Wednesday."}],[{"start":94.1,"text":"In its report, MSCI flagged concentrated and opaque ownership structures that undermined proper price formation in Indonesian stocks. The index provider is due to make a decision on reclassification in November."}],[{"start":109.19999999999999,"text":"Since MSCI’s warning, Jakarta has taken steps to improve transparency."}],[{"start":113.79999999999998,"text":"It has doubled the requirement for minimum free float — the portion of stocks available for public trading — to 15 per cent, giving companies up to three years to comply."}],[{"start":123.54999999999998,"text":"It has also tightened rules on shareholder disclosures, requiring public reporting of stakes above 1 per cent, down from the previous 5 per cent. "}],[{"start":132.45,"text":"Beyond the downgrade risks, investors have also been concerned by President Prabowo Subianto’s costly populist policies and increasing state control over the private sector."}],[{"start":144.25,"text":"The macroeconomic and fiscal policies have sent Indonesia’s currency tumbling against the dollar. The rupiah, which is trading near all-time lows, has lost 8 per cent of its value this year."}],[{"start":162.15,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1783486866_2946.mp3"}