MSCI Retains Indonesia's Emerging Market Status, Investment Prospects Remain Highly Promising

Jakarta, VIVA – Morgan Stanley Capital International (MSCI) in its Global Market Accessibility Review 2026 has confirmed that Indonesia will retain its emerging market classification. However, the Indonesian capital market received a note regarding the aspect of information flow.

Responding to this, Juwai IQI Global Chief Economist Shan Saeed said that MSCI’s attention to the Indonesian capital market could serve as a positive catalyst going forward, including for strengthening the competitiveness of the national financial market.

“History shows that successful capital markets are built through a process of continuous improvement. South Korea and India strengthened their market competitiveness through regulatory modernisation, improved governance, and better transparency. Indonesia has the same opportunity to do this,” Shan said, quoted on Friday, 19 June 2026.

He explained that Indonesia’s economic prospects remain very promising. He sees the combination of strong economic growth, a productive demographic structure, fiscal discipline, abundant natural resources, and the continuation of the reform agenda as important capital for Indonesia to continue developing.

“Amid an increasingly fragmented global economy, countries that possess a combination of scale, stability, demographics, natural resources, and reform momentum are becoming rare. Indonesia remains one of them,” he stated.

Shan assessed that the strength of Indonesia’s economic fundamentals remains intact, making the country one of the most attractive growth prospects in the region.

“Large economies are not defined by the amount of scrutiny they face, but by their ability to turn that scrutiny into reform, reform into trust, and trust into long-term capital formation. Indonesia’s trajectory shows that the country is doing just that,” he said.

This optimism is supported by Indonesia’s economic growth achievement, which reached 5.61 percent in the first quarter of 2026. This figure places Indonesia as one of the fastest-growing economies, both in the ASEAN region and among the G20 group.

At a time when many developed countries are only recording economic growth of around 1 to 2 percent, Indonesia is still able to maintain an expansion rate above 5 percent.

Shan explained that Indonesia’s economic resilience is underpinned by strong domestic consumption, sustained investment inflows, and credible macroeconomic policies.