OJK Reveals Indonesian Shares Poised for MSCI Inclusion, Held Back by Freeze Policy

JAKARTA, KOMPAS.com - The Financial Services Authority (OJK) has revealed that a number of Indonesian shares have the potential to enter the global Morgan Stanley Capital International (MSCI) index. However, this opportunity is still held back by MSCI’s freeze policy.

OJK Executive Head of Capital Markets Supervision, Financial Derivatives, and Carbon Exchange, Hasan Fawzi, stated that not all shares exiting the MSCI index are due to a decline in company quality or performance.

According to Hasan, several domestic shares are deemed eligible for inclusion in other index groups. However, this process cannot yet proceed due to MSCI’s freeze policy towards Indonesia.

“There are a number of shares that actually have the potential to enter the MSCI index, but for now, they are still held back because of the freeze policy towards Indonesia,” Hasan said during a press conference on Wednesday (13/5/2026).

Hasan explained that the process of determining shares in the MSCI index is based on a number of open indicators, ranging from free float to the level of share ownership concentration.

“Based on our initial calculations, we can already see the shares that have the potential to be affected, because the criteria for determining shares entering index groups, including global indices, are fundamentally transparent,” he elaborated.

MSCI previously stated that it would not add Indonesian shares to the MSCI Investable Market Indexes in the May 2026 review.

This decision came after MSCI issued a warning in January 2026 regarding the risk of Indonesia’s status being downgraded from emerging market to frontier market.

The assessment relates to issues of share ownership transparency and trading mechanisms in Indonesia’s capital market.

According to him, the adjustment to the global index is a short-term consequence of the market integrity reforms currently being carried out by OJK together with the Self-Regulatory Organization (SRO).

“The results of the MSCI rebalancing announced today are certainly part of the short-term consequences of the market integrity reform process we are presenting,” Hasan said.