Most MSCI Indicators Remain Strong, OJK Highlights Room for Improvement in Market Transparency

The majority of indicators for Indonesian capital market accessibility in the Morgan Stanley Capital International (MSCI) Global Market Accessibility Review 2026 are still considered to show strong performance. However, the Financial Services Authority (OJK) notes there remains room for improvement, particularly in the aspect of transparency and the quality of information flow, which was one of the concerns in the latest MSCI assessment. Hasan Fawzi, Chief Executive of Capital Market, Derivatives Finance, and Carbon Exchange Supervision at OJK, stated that the MSCI market accessibility review further reinforces the direction of Indonesian capital market reform to continue strengthening transparency, improving the ability to identify coordinated trading, and bolstering market competitiveness. “In general, the majority of aspects of Indonesia’s market accessibility are maintained and did not experience significant changes compared to the previous year. However, there are also notes for the direction of future capital market improvement,” Hasan said in an official statement on Friday (19/6). Of the five market accessibility segments covering 18 assessment criteria, this year’s MSCI assessment results were relatively unchanged from the previous year. The only change occurred in one criterion, namely information flow, which is part of the market infrastructure segment. In detail, 10 out of 18 criteria received a ‘++’ rating, the highest category indicating alignment with global best practices without significant issues. Meanwhile, six criteria remained at the ‘+’ level, showing room for improvement. Two criteria, namely information flow and foreign exchange market liberalisation level, still received a ‘-’ rating, indicating the need for further improvement. Responding to these notes, OJK views MSCI’s input as part of a constructive evaluation process aligned with the capital market reform agenda currently being implemented together with the Indonesia Stock Exchange (BEI), the Indonesian Central Securities Depository (KSEI), the Indonesian Clearing and Guarantee Corporation (KPEI), and all capital market industry players. “This is in line with the capital market reform agenda currently being carried out together,” Hasan said. On the other hand, OJK also noted MSCI’s recognition of several improvement measures Indonesia has undertaken, including the reduction of some notes related to the foreign exchange market liberalisation level. However, the assessment result for that aspect remains the same as the previous year, requiring further enhancement. As a follow-up, OJK continues to conduct intensive coordination internally and with relevant authorities, including Bank Indonesia. This step is taken to ensure that improvements remain aligned with national macroprudential policy and risk mitigation efforts to maintain stability and prevent market volatility. In recent months, the regulator has also rolled out various reform initiatives to strengthen the quality, integrity, and competitiveness of Indonesia’s capital market. These measures include improving the quality of share ownership data, strengthening information disclosure, developing a beneficial ownership reporting framework, enhancing supervisory and trade surveillance capacity, and refining regulations to support transparency and investor protection. According to OJK, these various reforms have received acknowledgement from market participants and global index providers such as MSCI and FTSE Russell. In fact, a number of policies that have been implemented are now beginning to be used as variables in determining index constituents and global investment portfolio policies. As conveyed in MSCI’s publication in May 2026, the global index provider will continue to gather input from investors and local and international market participants, including investment managers, brokers, and hedge funds, to validate the effectiveness of Indonesia’s implemented capital market reforms. Going forward, OJK will also continue to strengthen engagement and constructive dialogue with MSCI, FTSE Russell, and various global index providers and international investors.