Indonesia's Index Will Not Drop to Frontier Market Status, OJK Chief Reveals Reasons

Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) is optimistic that four points in the capital market reform proposal for the Indonesia Stock Exchange (BEI) will maintain Indonesia’s position and prevent it from being downgraded from emerging market to frontier market status by Morgan Stanley Capital International (MSCI).

The Executive Head of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, Hasan Fawzi, stated that the capital market transformation proposal has already been submitted to MSCI.

“We must certainly be optimistic on one side. Because, if friends can look at it objectively, yes. If we compare with the conditions of transparency and integrity level in the form of information disclosure and law enforcement in the regional and global context,” said Hasan Fawzi when met by reporters at the BEI Building on Thursday (2/4/2026).

Hasan acknowledged that a few months ago, Indonesia’s position was still lagging in terms of transparency and information disclosure compared to global standards. However, this situation has now improved along with the presentation of the latest data and various initiatives that continue to be strengthened sustainably.

He emphasised that these improvement steps are not merely short-term initiatives but will be made permanent policies through continuously updated regulations. In addition, communication with MSCI is being intensified.

“Next week, there will be colleagues from SRO. But I might be in the third week. In the third week, there is even a possibility that we will specifically visit them,” he explained.

Hasan detailed the four proposals. First, the provision of monthly share ownership data above 1 percent for each issuer has been completed by the authority on 3 March 2026.

Second, the increase in granularity of investor classification from the previous 9 categories to 39 categories has been carried out by the authority and established on 31 March 2026.

Third, the implementation of high shareholding concentration has been carried out by the authority on 2 April 2026, allowing investors to identify shares with high ownership concentration or limited liquidity.

Fourth, the increase in the minimum free float limit for issuer shares from 7.5 percent to 15 percent has been carried out by the authority on 31 March 2026.