IDX to Seek Clarification from MSCI on Information Disclosure Notes
The Indonesia Stock Exchange (IDX) will engage in further communication with MSCI regarding several notes provided concerning the Indonesian capital market, specifically regarding information disclosure and market transparency. The President Director of IDX, Jeffrey Hendrik, stated that the exchange needs to obtain more detailed explanations regarding the aspects of MSCI’s concern so that targeted improvement measures can be implemented.
“We will certainly discuss further with MSCI to understand in detail the areas that remain a concern for them,” said Jeffrey on Friday (19/06/202<0xA0>6).
MSCI previously maintained Indonesia within the emerging market group. However, the global index provider provided several notes regarding market transparency, including the quality of information flow, the disclosure of share ownership structures, and the concentration of issuer ownership.
Jeffrey stated that the various information required by investors is essentially available in the Indonesian capital market. Therefore, the IDX seeks clarity on which specific pieces of information are deemed inadequate or not easily accessible to global investors.
According to him, the exchange has been continuously implementing various improvements to enhance the quality of information disclosure for listed companies and to expand investor access to market data and information.
The IDX has also implemented several new policies to strengthen market transparency, including the mandatory reporting of ultimate beneficial owners (UBO) and the enhancement of disclosure standards for issuers.
The Executive Head of Capital Market, Derivatives, and Carbon Exchange Supervision at the OJK, Hasan Fawzi, stated that the regulator, alongside the IDX and Self-Regulatory Organisations (SRO), will continue capital market reforms to increase the integrity and competitiveness of the Indonesian market. According to Hasan, input from MSCI is a vital part of the effort to strengthen governance and investor protection in the domestic capital market.
Analyst and founder of Stocknow, Hendra Wardana, assessed that MSCI’s decision to maintain Indonesia’s status as an emerging market is good news, as it eliminates the risk of massive foreign fund outflows due to changes in market classification.
Nevertheless, he believes that MSCI’s notes regarding transparency must be a serious concern for all stakeholders to ensure that global investor confidence in the Indonesian capital market continues to rise.
“Transparency, information quality, and market governance will be crucial factors in maintaining Indonesia’s attractiveness in the eyes of international investors,” said Hendra.