Jakarta.  Jakarta Composite Index (JCI) opened higher on Wednesday after MSCI retained Indonesia's Emerging Market status, despite a warning that persistent concerns over market investability could eventually trigger a review for a downgrade to Frontier Market status.

The benchmark index gained 27 points, or 0.44%, to 6,128 in early trading, moving within a range of 6,127-6,160.

Within the first two minutes of trading, volume reached 1 billion shares with turnover of Rp 709 billion ($39.5 million) across more than 90,700 transactions. Gainers outnumbered losers 321 to 112, while 203 stocks were unchanged.

MSCI's Annual Market Classification Review, released early Wednesday Jakarta time, left Indonesia in the Emerging Market category. However, the index provider said market participants continued to express significant concerns about the country's investability.

"Negative external sentiment and the MSCI announcement are expected to put pressure on the JCI, with the index potentially testing the 6,000 level," Phintraco Sekuritas wrote in a research note on Wednesday.

MSCI acknowledged reforms introduced by the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and the Indonesia Central Securities Depository (KSEI), including enhanced disclosure requirements for shareholders owning more than 1% of listed companies, more detailed investor classifications, the introduction of the High Shareholding Concentration (HSC) framework, and an increase in the minimum free-float requirement to 15%.

The index provider said it would continue evaluating the scope, consistency, and effectiveness of these measures in determining free float and broader market accessibility.

If sufficient progress is not evident by MSCI's November 2026 Index Review, the firm said it could consider several options for Indonesia, including launching a consultation on reclassifying the country from Emerging Market to Frontier Market.

Separately, Phintraco highlighted the government's Rp 26.34 trillion economic stimulus package for the second half of 2026, comprising eight programs aimed at supporting household consumption and economic activity.

The package includes Rp 2.04 trillion in tax incentives and transportation subsidies, Rp 6.26 trillion for the continuation of the national apprenticeship program, and Rp 18.04 trillion in food assistance.

Measures include a special 1.5% final income tax rate on royalty income for authors, transportation discounts during school holidays and the Christmas-New Year period, import incentives for LPG and plastic raw materials, apprenticeship and vocational training programs, rice aid, and food price stabilization assistance.

"The stimulus package is expected to help strengthen purchasing power amid inflationary pressures and higher interest rates," Phintraco said.

Global sentiment remained mixed after Wall Street extended losses overnight as a sell-off in technology stocks spread from Asia to the United States amid concerns that interest rates could remain higher for longer.

The S&P 500 fell 1.4%, while the tech-heavy Nasdaq Composite dropped 2.2%. The Dow Jones Industrial Average slipped 0.1%.

As of 9:06 a.m. Jakarta time, Japan's Nikkei 225 fell 0.43%, South Korea's Kospi jumped 2.85%, Hong Kong's Hang Seng gained 0.57%, while China's Shanghai Composite declined 0.60%.