MSCI Rebalancing Announcement Today, OJK Optimistic Indonesia Will Maintain Emerging Market Status

REPUBLIKA.CO.ID, JAKARTA – The Financial Services Authority (OJK) is convinced that reforms to improve the integrity of Indonesia’s capital markets will bring long-term benefits, even though they may trigger changes in the composition of stocks in the MSCI index following the rebalancing announcement on Tuesday (12/5/2026). “With the improvements and integrity reforms we are carrying out, there will certainly be impacts. And even if there are short-term adjustments, we see this as short-term pain, but God willing, long-term gain,” said OJK Commissioner Council Chair Friderica Widyasari Dewi when met by the media at the Indonesia Stock Exchange (BEI), Jakarta, on Monday (11/5/2026). Friderica, or familiarly known as Kiki, views the potential changes in Indonesia’s stock composition in the MSCI index as a consequence of fundamental improvements to the capital markets, including strengthening information transparency, market integrity, and law enforcement. “They (MSCI) have already said freeze, so no new stocks will enter the MSCI index, but the old ones might exit. But we’ll see, hopefully we can anticipate this well,” she said. She also asked market participants not to overreact to the MSCI rebalancing results. According to her, potential index adjustments due to capital market reforms are short-term consequences that should be seen as part of strengthening the fundamentals of Indonesia’s financial markets. “So, don’t let people keep getting panicked and so on. This is indeed a consequence of the improvements we are making,” said Kiki. Regarding the potential downgrade of Indonesia’s status from emerging market, Kiki said that decision will only be reviewed by MSCI in June 2026.