Positive Welcome to FTSE Classification, OJK Strengthens Capital Market Integrity
The Financial Services Authority (OJK) has welcomed the results of the FTSE Russell assessment in the FTSE Equity Country Classification March 2026 Interim Announcement, released on Tuesday (7/4). Indonesia’s status in the FTSE Russell classification remains in the Secondary Emerging Market category, on par with major countries such as China and India. Additionally, FTSE Russell has not placed Indonesia on the Watch List.
The FTSE Russell assessment reflects the initiatives being undertaken through the implementation of the eight Action Plans for Accelerating the Reform of Indonesian Capital Market Integrity, showing positive and credible progress in the eyes of the global index provider.
FTSE Russell also stated that various reform steps, encompassing strengthening transparency, integrity, and governance of the market, will continue to be monitored continuously in line with their implementation process.
“In line with this, OJK emphasises that the various strategic policies that have been implemented together with Self-Regulatory Organisations (SROs) are part of comprehensive efforts to strengthen the credibility and competitiveness of the Indonesian capital market,” wrote the Head of the Surveillance and Integrated Financial Services Sector Policy Department of OJK, Agus Firmansyah, quoted on Wednesday (8/4/2026).
Four proposals to strengthen market transparency that were previously communicated to global index providers have now been fully completed. These include transparency of share ownership data above 1%, strengthening the granularity of investor classification to a total of 39 classifications and investor types, an increase in the minimum free float limit to 15% to encourage healthier liquidity; and the implementation of High Shareholding Concentration (HSC) announcements as an early warning mechanism for investors.
In addition, there is strengthened transparency in the form of reporting of Beneficial Owners for shareholders with 10% or more ownership.
“OJK views the recognition of these various reform initiatives as a positive signal for increasing investor confidence, both domestic and global. This also reaffirms that the policy direction taken by Indonesia is in line with international best practices in strengthening the structure and quality of the capital market,” he stated.
Going forward, OJK together with all stakeholders will continue to implement reforms consistently and measurably, as well as strengthen communication and engagement with global index providers, including FTSE Russell. This step is taken to ensure that all policies taken can be implemented effectively and have a real impact on improving market quality.
“OJK also reaffirms its commitment to continue maintaining market stability, strengthening investor protection, and encouraging market deepening through product development and expansion of the investor base. With maintained domestic economic fundamentals and sustainable policy synergy, OJK believes that the Indonesian capital market will become increasingly credible, inclusive, and globally competitive,” Agus concluded.