OJK: MSCI Review Reflects Global Confidence in Indonesian Capital Market

Jakarta - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Friderica Widyasari Dewi stated that the review from MSCI reflects global investor confidence in the resilience of the national economy, the stability of the financial services sector, and reforms aimed at strengthening transparency, integrity, and competitiveness of the Indonesian capital market. “We also note MSCI’s recognition of various capital market integrity reform measures that have been implemented. A number of areas that remain of concern are part of a constructive evaluation process and will continue to be followed up together with all stakeholders,” Friderica said in an official statement in Jakarta on Wednesday. Along with that, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK Hasan Fawzi said the MSCI assessment results show recognition from the global index provider of Indonesia’s capital market reform agenda that has been running since the beginning of the year. “MSCI not only maintained Indonesia’s status as an Emerging Market, but also provided recognition that the various reform measures we have and are currently undertaking are on the right track. This is reflected in the assessment results of Indonesia’s market accessibility which remains well maintained,” said Hasan. According to him, recognition of the reform agenda is an important asset for the Indonesian capital market to continue growing with an increasingly strong foundation of transparency, integrity, and governance. “Of course, we see there is still room for improvement and various inputs that need to be observed constructively. Therefore, we are committed to continuing to strengthen engagement with global index providers, global investors, and all relevant stakeholders to further enhance the credibility, integrity, and investability of the Indonesian capital market going forward,” Hasan said. Hasan emphasised that maintaining emerging market status is not the final goal, and his party will continue to strengthen and accelerate the implementation of the reform agenda in the Indonesian capital market, with the support of close coordination and synergy with all stakeholders. “This step is also aimed at following up on input and concerns from related parties in an effort to strengthen the credibility and integrity of the domestic capital market,” said Hasan. Going forward, he continued, efforts to strengthen the relevance and role of the Indonesian capital market on a global scale will also continue to be reinforced, supported by Indonesia’s strong economic performance and domestic market growth in accordance with its fundamental conditions. “We believe the Indonesian capital market remains very prospective and attractive, both for domestic and global investors. This is supported by maintained domestic economic fundamentals, a continuously growing investor base, competitive stock valuations, and the fundamental performance of issuers which is generally still very positive,” said Hasan. Through the release of the MSCI 2026 Market Classification Review on Wednesday morning, MSCI has acknowledged the transparency reforms carried out by the Indonesian capital market authority. However, MSCI stated it will continue to assess the scope, consistency, and ongoing effectiveness of the Indonesian capital market, in the context of determining free float and broader investability eligibility, which will continue to be monitored until the MSCI Index Review in November 2026. “If sufficient progress is not observed by the November 2026 Index Review, MSCI will consider various options for the appropriate treatment of the Indonesian market, which could potentially include a consultation on reclassifying Indonesia from Emerging Markets to Frontier Markets,” MSCI wrote in its announcement. Previously, on 19 June 2026, MSCI also released the Global Market Accessibility Review 2026. The evaluation results placed Indonesia’s market accessibility as one of the best among emerging market countries in the Asia-Pacific region.