OJK Strengthens and Accelerates Capital Market Reform in Response to MSCI Review
Jakarta (ANTARA) - The Financial Services Authority (OJK) has confirmed it will continue, strengthen, and accelerate Indonesia’s capital market reform agenda, which was launched earlier this year, in response to the MSCI 2026 Market Classification Review announcement.
The OJK welcomed MSCI’s recognition of Indonesia’s various capital market reform initiatives and programmes, noting that MSCI has utilised increasingly transparent data as a new source in its assessment.
"This shows how our reform achievements have received meaningful recognition, thereby further strengthening the credibility and investability of the domestic capital market," said Hasan Fawzi, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, in an official statement in Jakarta on Wednesday.
Hasan stated that OJK appreciates MSCI’s statement that it will continue to monitor Indonesia’s capital market reform agenda, and therefore OJK will consistently implement and strengthen all reform programmes.
Going forward, he confirmed that OJK and Self-Regulatory Organizations (SRO) will continue constructive communication and engagement with global index providers and investors to ensure the reform agenda is comprehensively understood by the global investment community.
Additionally, OJK will maintain regular communication with global institutional investors (facilitated by the World Bank, IFC, and ASIFMA) to convey and explain the progress of implemented reforms directly.
"Furthermore, we also open space to receive input and feedback that helps us strengthen various aspects of the capital market," Hasan said.
According to Hasan, MSCI’s recognition can serve as capital for Indonesia’s capital market to grow robustly and sustainably in the future, with a much stronger foundation of transparency, governance, and market integrity than before.
"Thus, the Indonesian capital market will increasingly play a role as the main driver of long-term capital formation and a trusted investment centre, to support national economic growth and financial system stability," Hasan said.
Through the MSCI 2026 Market Classification Review announcement on Wednesday morning (24/6), MSCI acknowledged the transparency reforms announced by the OJK, the Indonesia Stock Exchange (BEI), and the Indonesian Central Securities Depository (KSEI).
The recognition includes improved disclosure of shareholders with ownership above 1 percent, more detailed investor classification, the introduction of a High Shareholders Concentration (HSC) framework, and a roadmap to increase the minimum free float requirement to 15 percent.
"Although this announcement is a step in the right direction, what matters for international institutional investors is the consistent implementation and sustained effect of these measures across the market," MSCI stated in its announcement.
However, MSCI stated it will continue to assess the scope, consistency, and sustained effectiveness of Indonesia’s capital market, in the context of free float determination and broader investability assessment, which will remain under review until the MSCI Index Review in November 2026.
"If sufficient progress is not observed by the November 2026 MSCI Index Review, MSCI will consider various options for the appropriate treatment of the Indonesian market, potentially including a consultation on reclassifying Indonesia from Emerging Markets to Frontier Markets," MSCI wrote.
In its announcement, MSCI stated that there is currently no change to Indonesia’s market classification, meaning it remains in the Emerging Markets category.