{
    "success": true,
    "data": {
        "id": 1811595,
        "msgid": "msci-flags-indonesias-forex-market-in-accessibility-review-1781844937",
        "date": "2026-06-19 10:44:41",
        "title": "MSCI Flags Indonesia's Forex Market in Accessibility Review",
        "author": "",
        "source": "TEMPO_ID_BISNIS",
        "tags": "",
        "topic": "Finance",
        "summary": "MSCI has maintained a negative assessment of Indonesia's foreign exchange market liberalisation in its 2026 Global Market Accessibility Review, citing an inefficient offshore market and domestic transaction constraints. The downgrade of the operational efficiency score reflects growing concerns over Bank Indonesia's increasingly restrictive forex policies, including tighter limits on non-underlying currency purchases. An economist warns that the trajectory towards capital controls risks diminishing Indonesia's investability and could slowly turn its capital and money markets into a 'zombie market'.",
        "content": "<p>Morgan Stanley Capital International (MSCI) has assigned a negative\nrating to Indonesia\u2019s foreign exchange market liberalisation indicator,\nunchanged from its previous review. This was revealed in the 2026 Global\nMarket Accessibility Review. Foreign exchange market liberalisation is\none of the aspects the institution assesses regarding the ease of\ncapital inflows and outflows.<\/p>\n<p>\u201cThere is no efficient offshore foreign exchange market and there are\nconstraints on the onshore foreign exchange market (for example, forex\ntransactions must be linked to securities transactions),\u201d MSCI stated in\nits report released on Friday, 19 June 2026.<\/p>\n<p>Overall, MSCI evaluates five criteria: openness to foreign investors,\nease of capital inflows and outflows, efficiency of the operational\nframework, availability of investment instruments, and stability of the\ninstitutional framework. For the operational framework efficiency\ncriterion, MSCI gave a negative rating for information flow. This rating\ndeclined from the previous year.<\/p>\n<p>Paramadina University economist Wijayanto Samirin assessed that\nMSCI\u2019s concerns emerged as a response to Bank Indonesia\u2019s (BI)\nincreasingly restrictive foreign exchange transaction policies. Most\nrecently, BI tightened the purchase of foreign exchange without\nunderlying documents to US$10,000 per entity per month, with the aim of\nstrengthening the rupiah exchange rate. This policy takes effect from 1\nJuly 2026.<\/p>\n<p>Since the beginning of the year, BI has continuously tightened the\nthreshold for forex purchases from the original US$100,000 to US$50,000,\nthen to US$25,000. \u201cThis policy keeps changing, three times this year\nalone, and is becoming more restrictive. Then the policy regarding\nexport proceeds also forms the background to MSCI\u2019s concerns,\u201d Wijayanto\nsaid when contacted on Friday, 19 June 2026.<\/p>\n<p>Wijayanto also highlighted how the central bank\u2019s policies are moving\ntowards exchange controls, which is one of the hallmarks of a frontier\nmarket. He fears that when a country\u2019s market is not connected to global\nmarkets, its investability value becomes low.<\/p>\n<p>Furthermore, he argued that various recent Indonesian policies tend\nto be unfriendly to markets and investors. \u201cIf we do not change our\nmindset, our capital and money markets will slowly die, becoming a\n\u2018zombie market\u2019. It appears alive, but is actually dead and has no\neconomic role,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/msci-flags-indonesias-forex-market-in-accessibility-review-1781844937",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}