Full Transparency Ensures OJK's Confidence that MSCI Will Not Downgrade Indonesia's Capital Market Status

Jakarta (ANTARA) - The Financial Services Authority (OJK) is optimistic that Indonesia’s capital market status will not be downgraded by Morgan Stanley Capital International (MSCI) Inc from emerging market to frontier market, following the completion of four reform agendas for capital market transparency in Indonesia.

OJK’s Executive Head of Capital Markets, Financial Derivatives, and Carbon Exchange Supervision, Hasan Fawzi, stated that Indonesia’s capital market currently holds a stronger position in terms of transparency, integrity, information disclosure, and rule enforcement, even surpassing several regional and global capital markets.

“Even if we compare with the transparency conditions and integrity levels in the form of information disclosure and law enforcement in the region and globally, actually as of today, many of our positions are already more detailed and further advanced than what is done by markets in the region and globally,” said Hasan in an interview at the Indonesia Stock Exchange (BEI) building in Jakarta on Thursday.

Several months ago, Hasan acknowledged that Indonesia’s capital market still had several notes, particularly regarding the level of information disclosure, which at that time was deemed not yet comparable to regional and global exchanges.

“As of today, certainly with the real data as of March (2026) and we will carry this out periodically, this is not a momentary initiative that stops at this time. But we will continue to present it and make it a regulation,” said Hasan.

On Thursday (02/04), OJK together with the Self-Regulatory Organisation (SRO), which includes the Indonesia Stock Exchange (BEI) and the Indonesian Central Securities Depository (KSEI), has completed four agendas for strengthening capital market transparency in Indonesia.

Hasan explained in detail the four proposals: first, the authority has completed the provision of monthly share ownership data above 1% for each issuer, finalised on 3 March 2026.

Third, the authority has implemented high shareholding concentration on 2 April 2026, allowing investors to know shares with high ownership concentration or limited liquidity.

Finally, fourth, the authority has increased the minimum free float limit for issuer shares from the previous 7.5% to 15% on 31 March 2026.