OJK Welcomes MSCI's Recognition of Indonesia's Capital Market Reforms

Looking ahead, the implementation of reform measures will continue to be maintained to ensure they proceed consistently, measurably, and sustainably. Jakarta (ANTARA) - The Financial Services Authority (OJK) welcomes the announcement regarding the Update on Free Float Assessment of Indonesian Securities released by MSCI Inc. on 20 April 2026. The announcement affirms that MSCI has noted and acknowledged the various strategic steps taken by OJK, the Indonesia Stock Exchange (BEI), and the Indonesian Central Securities Depository (KSEI) to strengthen transparency and integrity in Indonesia’s capital market. “The various strategic initiatives above are part of ongoing efforts to improve the quality of market governance, strengthen investor protection, and encourage Indonesia’s capital market to become more credible, transparent, and globally competitive,” stated the Head of the Executive for Capital Market, Derivative Financial, and Carbon Exchange Supervision of OJK, Hasan Fawzi, in an official statement in Jakarta on Tuesday. The capital market reform initiatives in Indonesia that have caught MSCI’s attention include increasing transparency of share ownership above 1%, strengthening the granularity of investor classification, implementing the High Shareholding Concentration (HSC) framework, and increasing the minimum free float limit. The Chairman of the OJK Board of Commissioners, Friderica Widyasari Dewi, emphasised that MSCI’s initial recognition of the achievements in capital market transparency reforms is a positive signal regarding the policy direction pursued by Indonesia. “Looking ahead, the implementation of reform measures will continue to be maintained to ensure they proceed consistently, measurably, and sustainably, and will be strengthened through active coordination with various parties, including global market players,” said Friderica. Currently, MSCI is conducting further assessments based on new data sources generated from Indonesia’s capital market reform initiatives, including gathering input from global market players. This is part of the process to refine the assessment for the MSCI Index Review in May 2026 and the MSCI Market Accessibility Review in June 2026. OJK views this process as an important momentum to demonstrate the effectiveness of the various policies that have been rolled out, with optimism that these concrete steps will further strengthen the accessibility and increase the investability of Indonesia’s capital market. As part of its commitment to sustainable reforms, OJK reaffirms that it will continue to promote the strengthening of national capital market integrity through the implementation of the eight Action Plans for Accelerating Capital Market Integrity Reforms in Indonesia. The action plans include increasing transparency, strengthening liquidity, enhancing law enforcement and governance, and deepening the market. With these various efforts, OJK believes that Indonesia’s capital market is on the right track to become a deeper, more liquid, and credible market, capable of providing optimal contributions to national economic growth. On the other hand, MSCI will continue to maintain the steps previously announced, which currently apply to the Indonesian market, including freezing all increases in Foreign Inclusion Factor (FIF) and Number of Shares (NOS), freezing the addition of constituents to the MSCI Investable Market Indexes (IMI), and freezing upward movements between index size segments, including from Small Cap to Standard. In addition, consistent with the treatment of other countries’ markets, MSCI announces that it will remove shares identified by Indonesian authorities as shares with high ownership concentration or High Shareholding Concentration (HSC). MSCI may also use 1% shareholder disclosure data to adjust free float estimates if appropriate.