Airlangga Responds to MSCI's Notes on Indonesian Capital Market Transparency
Global index provider MSCI has kept Indonesia in the emerging market category in its 2026 Global Market Accessibility Review report released on 18 June 2026. In the report, MSCI downgraded the information flow rating for Indonesia’s capital market from positive to negative. The adjustment occurred in the Information Flow criteria, changing from ‘+’ to ‘−’. According to Coordinating Minister for Economic Affairs Airlangga Hartarto, the government views this note as confirmation of the direction of capital market reform agendas that have been and are currently underway. He stated that the MSCI note actually confirms that Indonesia’s economic fundamentals and market access remain strong.
“The focus of attention is on aspects of market transparency and integrity, and it is here that the Government, together with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (BEI), has been and continues to carry out concrete reforms, ranging from free float adjustments, disclosure of ultimate beneficial owners, to market deepening. 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,” said Airlangga, as quoted on Monday (22/6/2026).
He affirmed the government’s commitment to maintaining investor confidence in the national capital market. MSCI underlined that the access, size, and liquidity of the Indonesian market are still considered adequate, and there are no foreign ownership restriction issues highlighted in this year’s review. The highlighted areas for improvement focus on enhancing the quality of share ownership structure disclosure and strengthening the integrity of price formation, areas which are precisely the current reform priorities of the Government and authorities. Notes regarding the provision of market information in English are also ready to be optimised to improve ease of access for global investors.
In aggregate, MSCI stated that in this year’s cycle, there were more improvements than downgrades in assessments across emerging markets. The market accessibility assessment adjustments in 2026 were only experienced by Indonesia and Turkey. “It is important to underline that this adjustment does not change Indonesia’s status as an emerging market. The official market classification decision will be announced by MSCI through the Annual Market Classification Review on 23 June 2026,” Airlangga stressed.
According to Airlangga, the government and relevant authorities have prioritised strengthening market transparency and integrity. MSCI’s notes are in line with the reform direction being accelerated by the Financial Services Authority (OJK) and the Indonesia Stock Exchange (BEI), supported by cross-authority policy synergy. He outlined a number of government and OJK commitment measures to support the capital market, including: a free float policy from 7.5% to 15% to increase market liquidity (effective March 2026, phased compliance); ultimate beneficial owner (UBO) transparency through system development and ownership disclosure (ongoing, continuously strengthened); disclosure of shareholder names with ownership above 1% (already in effect, routine publication since March 2026); acceleration of the demutualisation of the Indonesia Stock Exchange (in process); integrated market deepening through increasing the stock investment limit for pension funds and insurance companies to 20% with a focus on LQ45 stocks; strengthening rule enforcement and sanctions; improving corporate governance of listed companies; and strengthening synergy among stakeholders.
“These measures are reinforced by a maintained macroeconomic foundation. Exchange rate stability, controlled inflation, and a prudent mix of fiscal and monetary policies serve as anchors for investor confidence in the national economy,” he said. He added that the government believes the combination of structural capital market reforms and macroeconomic stability will continue to strengthen the attractiveness and credibility of the Indonesian market in the eyes of global institutional investors.
On the external sector side, the Government together with Bank Indonesia continues to maintain market confidence through a measured policy mix, including adjusting the benchmark interest rate to 5.75% in June 2026, strengthening stability and deepening the foreign exchange market, prudent financing management including the issuance of Government Bonds in foreign currency denominations, and strengthening monetary and fiscal policy coordination to maintain liquidity adequacy. “This combination of measures serves as a buffer for external sector resilience while supporting investor confidence amidst global dynamics,” he stated.
Furthermore, he said the government urges market participants to remain calm and respond to this review result proportionally. He assured that the government continues to coordinate with MSCI and the global investor community, and ensures the reform agenda runs consistently ahead of the classification announcement on 23 June 2026 and the next review cycle.