OJK Urges MSCI for Fair Assessment Ahead of August 2026 Index Review

The Financial Services Authority (OJK) hopes Morgan Stanley Capital International (MSCI) will provide a fair assessment of the transparency of Indonesia’s capital market. This expectation was conveyed ahead of the MSCI index review announcement scheduled for 12 August 2026. Hasan Fawzi, Chief Executive of Capital Market, Derivative Finance, and Carbon Exchange Supervision at OJK, stated that the transparency of the Indonesian market has shown significant improvement compared to other markets. He hopes this objective assessment will encourage MSCI to promptly lift the freeze policy on a number of Indonesian securities. “We certainly hope it will fairly become part of their assessment to immediately release the freeze that has been implemented. So that the opportunity for other top shares already listed on the exchange to be assessed and included as index members becomes more open in the future,” Hasan said after the Indonesian Issuers Association (AEI) Members’ Meeting in Jakarta on Tuesday (11/8). He predicted that the impact of this rebalancing will not be as significant as the previous period in May. Based on preliminary calculations, the potential outflow of Indonesian shares from the index is expected to be smaller. He also stressed that the domestic capital market has proven resilient in facing passive fund flow volatility in the previous period, thanks to support from active and domestic retail investors. Echoing the OJK, Indonesia Stock Exchange (IDX) President Director Jeffrey Hendrik confirmed that the exchange has communicated all market reform measures to global index providers such as MSCI and FTSE Russell. He stated that the bourse’s current focus is maintaining the trust of both global and domestic investors. “Of course, the full authority lies with the Global Index Provider. We will just wait together,” Jeffrey said regarding the upcoming review results. MSCI had previously announced on 6 July 2026 that it would maintain temporary treatment for Indonesian securities, including a freeze on increasing the Foreign Inclusion Factor (FIF), number of shares (NOS), and a suspension of new constituent additions. The results of the latest review, announced on 12 August, are scheduled to take effect on 31 August 2026.