Not Downgrading, OJK Targets Indonesia's Stock Exchange to Rival Wall Street

JAKARTA, KOMPAS.com - The Financial Services Authority (OJK) assesses that the Indonesia Stock Exchange (BEI) is not heading towards a downgrade in market classification following the global index provider Morgan Stanley Capital International (MSCI) rebalancing in May 2026. On the contrary, OJK is targeting the domestic stock market to advance or enter the developed market category. Based on MSCI classification, countries in the developed market generally have a healthy capital market structure, high accessibility for foreign investors, and a stable economy. Currently, BEI is classified under emerging markets or developing country markets, according to MSCI grouping. “In the future, we certainly want to promote not a potential decline in classification. We actually have the potential to push our market even further and enter a higher classification,” said Hasan during a press conference at the BEI building in Jakarta on Wednesday (13/5/2026). Such efforts cannot be achieved instantly; Hasan acknowledged that hard work is needed through measured and mature strategic programmes. “But all this must be done properly in the context of strategic programmes and activities that are measured and planned. That is what we will present,” he explained. The capital market reform agenda targeted by OJK and the Self Regulatory Organisation (SRO) currently extends beyond mere improvements in governance and market transparency. The regulator is also preparing market deepening, increased transaction liquidity, and strengthening enforcement or rule enforcement in the exchange. According to him, these aspects are the main indicators in assessing the stock market’s status as a developed market or advanced market. “Actually, this capital market integrity reform does not stop at integrity reform. If you observe the eight action plans, there are aspects of market deepening, liquidity, and enforcement that we will prioritise. This is closely related to the criteria for developed markets, for example, or advanced markets,” Hasan elaborated. The reforms being promoted now are seen as the initial foundation for the exchange to advance. Hasan stated that BEI should not stagnate in the emerging market. “That is precisely what we hope this initial foundation will achieve, and if pushed further, we will not stay in the current market class. Why not? In due time, together with all market participants, we will jointly promote agendas to increase our market classification in the future,” he said. Specifically, OJK has already calculated which stocks have the potential to enter global indices, including MSCI indices.