FTSE Russell announced it will pause its review of Indonesia stocks for inclusion in its global indices, aligning with MSCI Inc.'s recent decision. This move signals deepening concerns about the investability of the Indonesian market, following MSCI's warning last month that significantly impacted the local equity market.

FTSE's action underscores persistent worries regarding Indonesia's regulatory environment, currency volatility, and corporate governance standards, which deter international investors. The combined stance from two major index providers amplifies pressure on Jakarta to address these systemic issues swiftly to restore confidence and prevent further capital outflows.