Airlangga: MSCI Review a Reminder to Accelerate Capital Market Reform
Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that the notes provided by MSCI on Indonesia’s capital market serve as a reminder to accelerate reforms in the sector. He said the MSCI review results show that Indonesia’s economic fundamentals and market access are still considered strong by global investors.
“MSCI’s notes actually confirm that Indonesia’s economic fundamentals and market access remain strong. The focus is on transparency and market integrity, and this is where the government, together with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (BEI), has been and continues to implement concrete reforms,” Airlangga said in a statement in Jakarta on Friday (20/6/2026).
MSCI previously maintained Indonesia in the emerging market category in its 2026 Global Market Accessibility Review report, released on 18 June 2026 local time. However, the global index provider downgraded Indonesia’s assessment on the information flow aspect from positive to negative.
According to MSCI, Indonesia’s market access, size, and liquidity are still considered adequate. In addition, there were no issues regarding foreign ownership restrictions that were of concern in this year’s review.
Airlangga said the government views MSCI’s notes as being in line with the reform agenda currently being implemented by regulators and market participants. These reforms include improving free float regulations, strengthening the disclosure of ultimate beneficial owners (UBO), transparency of shareholders with ownership above one percent, and deepening the capital market.
“We are optimistic that Indonesia will remain on the emerging market path, and the government is committed to completing this reform agenda to maintain investor confidence,” he said.
Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK Hasan Fawzi previously said MSCI’s notes would serve as important input for regulators to continue strengthening the integrity, transparency, and competitiveness of Indonesia’s capital market.
Analyst and founder of Stocknow Hendra Wardana assessed that MSCI’s decision to maintain Indonesia’s status as an emerging market is positive news because it eliminates market concerns about a possible downgrade to frontier market status. According to him, MSCI’s attention to market transparency could be a momentum for regulators and market participants to accelerate governance reforms, thereby increasing the attractiveness of Indonesia’s capital market in the eyes of global investors.