Indef: MSCI 2026 Review Proves Indonesian Capital Market Remains Relevant

The Institute for Development of Economics and Finance (Indef), Abra Talattov, assesses that the latest review results from global index provider Morgan Stanley Capital International (MSCI) reinforce Indonesia’s position as a market that remains relevant for global investors. According to Abra, MSCI’s decision to maintain most of its assessments for Indonesia is a positive signal amidst global financial market dynamics. This also allays foreign investor concerns regarding changes in rating agencies’ views on the domestic capital market since the beginning of the year. “This MSCI decision is not negatively surprising, but rather confirms expectations that Indonesia is still viewed as a market relevant to global investors,” Abra said in a written statement received in Jakarta, Saturday (20/6/2026). Abra explained that global investor confidence is driven by the nation’s robust economic fundamentals. Based on the latest macroeconomic data, Indonesia shows solid performance to remain in the Emerging Markets category. “This condition shows that national economic and financial sector stability is still well maintained amidst global uncertainty that has not fully subsided,” he added. In the Global Market Accessibility Review 2026 report released Friday (19/6), MSCI did note the Information Flow and Foreign Exchange Market Liberalization Level indicators, which were adjusted from “+” to “-”. Nevertheless, Abra stressed that the decline in the information transparency aspect does not reflect the overall quality of the Indonesian capital market. Out of a total of 18 indicators assessed, most of Indonesia’s positions remain highly competitive compared to other developing countries in Asia. “MSCI’s assessment is more appropriately viewed as input to continue the ongoing agenda of bureaucratic and transparency improvements, not as a signal of declining fundamental attractiveness,” Abra clarified. He is optimistic that the prospects for the Indonesian capital market remain bright, supported by an increase in the domestic investor base, substantial economic funding needs, and the continued deepening of the national financial market. With these review results, market participants are expected to remain rational and not overreact to specific assessment points.