UPDATE 1 — MSCI weighs downgrading Indonesia to standalone — market status

(Rewrites paragraph 1, adds details throughout) Oct 16 (Reuters) — MSCI said on Friday it was considering downgrading Indonesia to standalone- from emerging-market status, citing persistent concerns about the investability and governance of the country's equity market. The index provider launched a consultation on the proposed downgrade after warning in June that Indonesia could face reclassification if concerns over market accessibility persisted. MSCI said investors had raised concerns about opaque ownership structures, concentrated shareholdings and suspected coordinated trading, which it said undermined the market's investability. Indonesian authorities have since announced reforms, including enhanced shareholder disclosure requirements and a roadmap for a minimum free-float requirement of 15%. However, MSCI said market participants had yet to see consistent evidence that the measures had materially improved market functioning. "Accordingly, MSCI considers Indonesia’s continued classification as an Emerging Market no longer appropriate and is launching a consultation on a proposal to reclassify Indonesia as a Standalone Market," MSCI said. The consultation will run until April