{
    "success": true,
    "data": {
        "id": 1831914,
        "msgid": "ojk-takes-msci-warning-on-market-downgrade-risk-seriously-1782809743",
        "date": "2026-06-30 14:52:30",
        "title": "OJK Takes MSCI Warning on Market Downgrade Risk Seriously",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Finance",
        "summary": "Indonesia's Financial Services Authority (OJK) is actively addressing concerns raised by MSCI regarding the potential reclassification of the Indonesian stock market to frontier market status. The regulator has implemented measures including lowering the shareholder disclosure threshold and increasing the minimum free float requirement. MSCI has acknowledged these reforms but warns that consistent implementation and further progress are needed by the November 2026 review to avoid a downgrade.",
        "content": "<p>The Financial Services Authority (OJK) is taking seriously the\nwarning from global index provider MSCI regarding the risk of\nIndonesia\u2019s capital market being downgraded to frontier market status.\nOJK Chair of the Board of Commissioners, Friderica Widyasari Dewi,\nstated that the regulator has responded to all concerns raised by MSCI,\nincluding a direct meeting in New York approximately two months ago to\ndiscuss feedback from global investors.<\/p>\n<p>Friderica explained that several steps have already been taken to\nimprove transparency. The threshold for disclosing shareholder identity\nhas been lowered from above 5 percent to above 1 percent. Additionally,\nregulations concerning the ultimate beneficial owner (UBO) have been\nadjusted to meet MSCI\u2019s concerns. On the liquidity side, the OJK\nsupports a regulatory adjustment to increase the minimum free float\nrequirement from 7.5 percent to 15 percent, with implementation being\ncarried out in stages.<\/p>\n<p>To ensure effective communication, the OJK has instructed the\nIndonesia Stock Exchange (BEI) to hold regular technical meetings with\nMSCI. The regulator also emphasised that it will strengthen law\nenforcement in the capital market, imposing strict sanctions on\nviolations and conducting delistings if necessary.<\/p>\n<p>MSCI released its 2026 Market Classification Review on 23 June (US\ntime), acknowledging the transparency reforms announced by the OJK, BEI,\nand the Indonesian Central Securities Depository (KSEI). These include\nthe enhanced disclosure of shareholders owning more than 1 percent, a\nmore detailed investor classification, the introduction of a High\nShareholders Concentration (HSC) framework, and the roadmap to increase\nthe minimum free float requirement to 15 percent.<\/p>\n<p>However, MSCI cautioned that while these announcements are a step in\nthe right direction, what matters for international institutional\ninvestors is the consistent implementation and sustainable effect of\nthese measures across the market. MSCI stated it will continue to assess\nthe scope, consistency, and ongoing effectiveness of Indonesia\u2019s capital\nmarket, with the situation remaining under close watch until the\nNovember 2026 MSCI Index Review. If sufficient progress is not evident\nby that time, MSCI will consider various options, potentially including\na consultation on reclassifying Indonesia from an Emerging Market to a\nFrontier Market.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/ojk-takes-msci-warning-on-market-downgrade-risk-seriously-1782809743",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}