MSCI Acknowledges Indonesian Capital Market Reforms, Retains Emerging Market Status

Jakarta - The Financial Services Authority (OJK) has welcomed the MSCI 2026 Market Classification Review announcement released on 24 June 2026, which maintains Indonesia’s status in the Emerging Markets category. Chair of the OJK Board of Commissioners, Friderica Widyasari Dewi, stated that this decision reflects global investor confidence in the national economic resilience, stability of the financial services sector, and various reforms continuously undertaken to strengthen transparency, integrity, and competitiveness of the Indonesian capital market. “We also note MSCI’s recognition of the various capital market integrity reform measures that have been implemented. The areas that remain of concern are part of a constructive evaluation process and we will continue to follow up on them together with all stakeholders,” Friderica said in Jakarta on Wednesday. Previously, on 19 June 2026, MSCI released its Global Market Accessibility Review 2026 report. The evaluation results placed Indonesia’s market accessibility as one of the best among Emerging Market countries in the Asia-Pacific region. Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, Hasan Fawzi, conveyed that the assessment results also demonstrate the global index provider’s recognition of the Indonesian capital market reform agenda implemented by the OJK and Self-Regulatory Organizations (SRO), with the support of all stakeholders, since the beginning of 2026. “We certainly welcome this recognition of the capital market reform achievements. MSCI not only maintained Indonesia’s status as an Emerging Market but also acknowledged that the various reform measures we have and are undertaking are on the right track. This is reflected in the maintained positive assessment of Indonesia’s market accessibility,” Hasan said. According to Hasan, the recognition of the reform agendas serves as important capital for the domestic capital market to continue growing with an increasingly strong foundation of transparency, integrity, and governance. “Of course, we see there is still room for improvement and various inputs that need to be examined constructively. Therefore, we are committed to continuously strengthening engagement with global index providers, global investors, and all relevant stakeholders to further enhance the credibility, integrity, and investability of the Indonesian capital market going forward,” Hasan said. Hasan noted that the MSCI market classification announcement is in line with the evaluation results of another global index provider, FTSE Russell, some time ago. “In April 2026, FTSE Russell already placed Indonesia in the Secondary Emerging Markets group, on par with several major markets such as China and India. Indonesia was also not placed on the Watch List for further review by FTSE Russell. This time, MSCI announced a similar outcome and maintained our status in Emerging Markets, even specifically highlighting the capital market reform initiatives we have and are rolling out,” Hasan said. Hasan also emphasised that maintaining the Emerging Markets status is not the end goal. The OJK and SRO will continue to strengthen and accelerate the implementation of reform agendas in the domestic capital market, with close coordination and synergy with all stakeholders. This step is also aimed at following up on inputs and concerns from relevant parties in an effort to strengthen the credibility and integrity of the domestic capital market. Going forward, efforts to strengthen the relevance and role of the Indonesian market on a global scale will also be continuously reinforced. This is underpinned by Indonesia’s strong economic performance and domestic market growth in line with its fundamental conditions. “We believe the Indonesian capital market remains highly prospective and attractive, both for domestic and global investors. This is supported by maintained domestic economic fundamentals, a continuously growing investor base, competitive stock valuations, and the generally very positive fundamental performance of issuers,” Hasan said. The OJK expressed its highest appreciation for the invaluable support from the Government, Commission XI of the House of Representatives, SROs, industry players, investors, and all stakeholders for the strong synergy and support in advancing the Indonesian capital market reform agenda. This achievement is the result of collective work reflecting a shared commitment to building a capital market that is increasingly transparent, has integrity, and is globally competitive.