Responding to MSCI report, Airlangga: RI market accessibility remains maintained

Indonesia’s capital market still meets the key characteristics of an emerging market and remains part of the global investment destination group. Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that Morgan Stanley Capital International’s (MSCI) decision to retain Indonesia in the Emerging Market category demonstrates that capital market accessibility remains well maintained. “This decision confirms that Indonesia’s capital market still meets the key characteristics of an emerging market and remains part of the global investment destination group,” Airlangga said in a statement in Jakarta on Thursday. As is known, global index provider MSCI Inc., in the results of the MSCI 2026 Market Classification Review announced on 23 June 2026 local time, did not reclassify Indonesia nor open consultations regarding a possible change in status from Emerging Market to Frontier Market. Nevertheless, Airlangga said the government is taking note of several inputs from MSCI to strengthen the quality of capital market governance. MSCI highlighted the need to improve transparency of share ownership structures and the integrity of price formation in the market. According to MSCI, global institutional investors still have concerns regarding the disclosure of share ownership information as well as indications of coordinated trading that could potentially affect free float assessments and the reliability of market prices as an investment benchmark. On the other hand, MSCI appreciated a number of reforms carried out by the government together with the Financial Services Authority (OJK), the Indonesia Stock Exchange (BEI), and the Indonesian Central Securities Depository (KSEI). These reforms include increased disclosure of shareholder identities with ownership above 1 percent, refinement of investor classification, implementation of the High Shareholding Concentration (HSC) framework, and the implementation of a roadmap to gradually increase the minimum free float to 15 percent. The government, together with OJK, BEI, KSEI, and Bank Indonesia, is committed to accelerating the implementation of various reform agendas before the next evaluation in the November 2026 MSCI Index Review cycle. These steps include strengthening market supervision, increasing share ownership transparency, improving listed company governance, strengthening trading integrity, and more effective law enforcement. Airlangga stated that the government will also continue to maintain active communication with MSCI and global investors to ensure that reform progress is reflected in the assessment of Indonesia’s market accessibility. In addition, the government will continue efforts to deepen the financial market to increase liquidity, expand the domestic investor base, strengthen the quality of price formation, and improve market efficiency. The Coordinating Minister emphasised that this year’s MSCI review results serve as momentum to accelerate national capital market reforms. “Indonesia’s continued status as an Emerging Market shows that the national economic fundamentals and Indonesia’s market accessibility remain strong. The government appreciates MSCI’s input as part of a joint effort to improve the quality of the capital market. Our focus is to ensure that every reform agenda does not stop at the policy level, but is truly implemented consistently so as to have a real impact on transparency, market integrity, and investor confidence,” said Airlangga. According to him, consistent reforms, supported by strong economic fundamentals and maintained macroeconomic stability, will strengthen Indonesia’s position as one of the main investment destinations in the region while maintaining its status as an Emerging Market.