OJK insists capital market reforms will continue amid MSCI concerns

Jakarta (ANTARA) — Financial Services Authority (OJK) Chairwoman Frederica Widyasari Dewi said Indonesia’s capital market reforms would continue amid scrutiny of the domestic stock market by global index provider Morgan Stanley Capital International (MSCI).

Frederica said the reforms were intended to improve the credibility, liquidity and transparency of Indonesia’s capital market, while strengthening its appeal as a destination for long-term investment.

“Capital market reform will continue, full stop. We are looking at how to secure the President’s support so that Indonesia’s capital market becomes more credible. That is why we must undertake reforms: to make it more credible and liquid, more transparent, and a home for long-term investment for Indonesians,” Frederica said at the Presidential Palace complex in Jakarta on Wednesday.

She stressed that efforts to improve the market were not being undertaken solely in response to a particular global index provider. The work had been under way since January 2026, in line with President Prabowo Subianto’s direction, she said.

“We are making improvements not because of one particular global index provider. Since January, in line with the President’s instructions, we have been addressing areas that still need improvement,” she said.

Frederica said the reforms focused on market integrity, transparency and liquidity. While she considered several indicators for Indonesia’s capital market to compare favourably with those of other countries, she acknowledged that some areas still needed to be strengthened, particularly enforcement.

OJK had taken enforcement action by imposing the largest fine in the history of Indonesia’s capital market, announced the previous Friday, she said. She added that enforcement would continue.

Asked whether Indonesia might be downgraded to standalone market status, Frederica declined to speculate on the potential scale of capital outflows.

She said the government and relevant authorities were continuing their efforts to retain Indonesia’s emerging market classification.

“We are continuing to work to ensure Indonesia remains an emerging market. We have the support of the President and all the ministries, so that Indonesia can continue to improve and, hopefully, retain its current position,” she said.