OJK: MSCI Acknowledges Indonesia's Capital Market Reforms but Holds Index Changes Until June 2026
The Financial Services Authority (OJK) states that MSCI Inc. has acknowledged various reforms in Indonesia’s capital market in its latest assessment. This recognition is important as it reflects global investor confidence, although it has not yet been followed by index changes.
OJK welcomes the update to the “Free Float Assessment of Indonesian Securities” released by MSCI on 20 April 2026. This step indicates that the reforms undertaken by the regulator are beginning to receive international recognition.
Hasan Fawzi, the Executive Head of OJK’s Capital Market Supervision, said MSCI has noted various efforts to improve market transparency and integrity. “These reforms aim to strengthen investor protection and global competitiveness,” Hasan stated in his remarks (21/4).
The reforms noted by MSCI include transparency of share ownership above 1%, more detailed investor classification, and the implementation of the High Shareholding Concentration (HSC) framework. Additionally, the regulator has increased the minimum free float threshold.
OJK Commissioner Chair Friderica Widyasari Dewi described this recognition as a positive signal for the direction of Indonesia’s capital market policies.
She emphasised that the implementation of reforms will be maintained consistently and sustainably. OJK also stressed the importance of coordination with global market players to ensure alignment with international standards.
Despite acknowledging the reforms, MSCI remains cautious in its upcoming index review. Based on research from Ciptadana Sekuritas Asia, MSCI will retain its current policies in the May 2026 review.
MSCI will not raise the Foreign Inclusion Factor (FIF) or the number of stocks (NOS). Furthermore, there will be no additions of Indonesian issuers to the MSCI Investable Market Index (IMI) and no upgrades from Small Cap to Standard.
MSCI will also remove stocks falling into the High Shareholding Concentration (HSC) category. Data on share ownership above 1% could potentially be used to adjust free float.
The focus is now shifting to the June 2026 review. MSCI is currently conducting further assessments by gathering data and input from global market players.
More comprehensive evaluation results are expected to be announced in the June 2026 Market Accessibility Review. According to Ciptadana’s research, this delay in decision-making has temporarily pressured market sentiment.
However, investor attention is now turning to the June evaluation results, which are considered more decisive. OJK views this process as an opportunity to demonstrate the effectiveness of the reforms that have been implemented.
The regulator is optimistic that these steps will improve the accessibility and attractiveness of investment in Indonesia’s capital market.
In conclusion, MSCI’s recognition of Indonesia’s capital market reforms serves as a positive signal for market credibility. However, the absence of index changes indicates that global investors are still awaiting consistent implementation. Attention is now focused on the June 2026 review as the next determinant.