MSCI Rebalancing Tomorrow: OJK Confident Indonesian Stock Market Status Secure, Urges Market Not to Panic
JAKARTA - The Financial Services Authority (OJK) is optimistic that the domestic capital market will remain in the emerging market category ahead of the Morgan Stanley Capital International (MSCI) global index rebalancing on Tuesday (12 May 2026).
In this rebalancing, MSCI will apply special treatment to certain stocks, particularly those assessed as having high shareholding concentration (HSC).
OJK Commissioner Council Chair Friderica Widyasari Dewi stated that MSCI’s evaluation regarding the possibility of Indonesia being downgraded from the emerging market category will only take place in June 2026. Nevertheless, she hopes the Indonesian stock exchange will be able to retain its status.
“That’s in June. Hopefully not (downgraded),” said the woman, familiarly known as Kiki, when met at the Indonesia Stock Exchange (BEI) building on Monday (11 May 2026).
“Because if we look at the data in granular detail, information openness, we might be one of the best in terms of the openness and integrity we convey. So hopefully this will also be considered so that Indonesia remains in the emerging market,” she explained.
However, she emphasised that all possibilities remain open, so all parties need to anticipate various scenarios that may arise from the MSCI evaluation results. She also urged the media and market participants not to build excessive panic if short-term pressures emerge in the stock market.
Furthermore, Kiki mentioned that the market still needs to await the official results of the MSCI index rebalancing, which will be announced tomorrow.
“Tomorrow, we’ll wait,” she said.
The adjustment of Indonesian stocks in the MSCI rebalancing is considered a normal matter. It is said to be part of the consequences of various improvements being carried out by the capital market authorities on the domestic exchange.
MSCI had previously announced a temporary suspension of adding new Indonesian stocks to the index. This means that in this evaluation, no new issuers will enter the MSCI index.
However, OJK noted that stocks that were previously in the index still have the potential to exit if they no longer meet MSCI’s requirements.
“But as I’ve always said, when we’re making improvements, there’s a possibility that some stocks will be adjusted. This is called index rebalancing. So even though the announcement is tomorrow, we’ll wait, they’ve already said freeze, so nothing new will enter, but the old ones might exit,” she explained.
In its latest review for May 2026, MSCI still maintains restrictions on Indonesian stocks. One of the policies reaffirmed is the removal of stocks with high ownership concentration that are deemed risky to liquidity and investment accessibility.
She views the short-term impacts that may arise from the MSCI evaluation as part of the fundamental improvement process for Indonesia’s capital market.