Coordinating Minister for Economic Affairs Airlangga Hartarto\nassessed that Morgan Stanley Capital International\u2019s (MSCI) decision to\nretain Indonesia in the Emerging Market category demonstrates that\ncapital market accessibility remains well-maintained. He stated that the\nMSCI decision confirms Indonesia\u2019s capital market still meets the key\ncharacteristics of a developing market. \u201cAnd remains part of the global\ninvestment destination group,\u201d Airlangga said in a statement on\nThursday, 25 June 2026.<\/p>\n
Global index provider MSCI, in its 2026 Market Classification Review\nresults announced on 23 June 2026, did not reclassify Indonesia nor open\nconsultations regarding a potential change in status from Emerging\nMarket to Frontier Market. However, Airlangga noted that the government\ncontinues to carefully consider several inputs from MSCI to strengthen\nthe quality of capital market governance. MSCI highlighted the need for\nincreased transparency in share ownership structures and integrity in\nprice formation in the market.<\/p>\n
According to MSCI, global institutional investors remain concerned\nabout the disclosure of share ownership information and indications of\ncoordinated trading that could potentially affect free float assessments\nand the reliability of market prices as investment benchmarks. On the\nother hand, MSCI appreciated several reforms undertaken by the\ngovernment together with the Financial Services Authority (OJK), the\nIndonesia Stock Exchange (BEI), and the Indonesian Central Securities\nDepository (KSEI).<\/p>\n
These reforms include increased disclosure of shareholder identities\nwith ownership above 1 percent, refinement of investor classification,\nimplementation of a High Shareholding Concentration (HSC) framework, and\nthe gradual implementation of a roadmap to increase the minimum free\nfloat to 15 percent. The government, together with OJK, BEI, KSEI, and\nBank Indonesia, is committed to accelerating the implementation of\nvarious reform agendas before the next evaluation in the MSCI Index\nReview cycle in November 2026.<\/p>\n
These steps include strengthening market supervision, increasing\nshare ownership transparency, improving the governance of listed\ncompanies, reinforcing trading integrity, and more effective law\nenforcement. Airlangga added that the government will also continue to\nmaintain active communication with MSCI and global investors to ensure\nthat reform progress is reflected in the assessment of Indonesia\u2019s\nmarket accessibility. Furthermore, the government will continue efforts\nto deepen financial markets to increase liquidity, expand the domestic\ninvestor base, strengthen the quality of price formation, and improve\nmarket efficiency. Airlangga emphasised that the results of this year\u2019s\nMSCI review serve as momentum to accelerate national capital market\nreforms.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/msci-retains-indonesias-emerging-market-status-airlangga-highlights-reform-commitment-1782381222", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }