Transparency Efforts Complete, OJK Confident MSCI Will Not Downgrade Indonesia's Capital Market Status

The Financial Services Authority (OJK) is optimistic that Indonesia’s capital market status will not be downgraded by Morgan Stanley Capital International (MSCI) Inc. from emerging market to frontier market.

OJK’s Executive Head of Capital Market Supervision, Financial Derivatives, and Carbon Exchange, Hasan Fawzi, emphasised that this confidence stems from the completion of four transparency reform agendas for Indonesia’s capital market.

He stated that Indonesia’s capital market now holds a stronger position in terms of transparency, integrity, information disclosure, and regulatory enforcement. He even described its current condition as more advanced than several regional and global capital markets.

“Even if we compare our transparency and integrity levels in the form of information disclosure and law enforcement regionally and globally, as of today, many of our positions are already more detailed and further advanced than those in regional and global markets,” said Hasan in Jakarta on Thursday, 2 April 2026.

Several months ago, Hasan acknowledged that Indonesia’s capital market still had several issues, particularly regarding the level of information disclosure, which was then deemed not yet comparable to regional and global exchanges.

However, he assured that the situation has now changed. Improvements made from the beginning of the year until March 2026 serve as proof that Indonesia’s capital market is continuously moving towards better market governance.

“As of today, with real data up to March (2026) and we will carry this out periodically, this is not a momentary initiative that stops at this time. But we will continue to present it and make it a regulation,” Hasan stated.

He confirmed that on Thursday, 2 April 2026, OJK, along with Self-Regulatory Organisations (SROs) including the Indonesia Stock Exchange (BEI) and the Indonesian Central Securities Depository (KSEI), has completed four agendas for strengthening transparency in Indonesia’s capital market.

Hasan then explained the four proposals in detail. First, the authorities have completed the provision of monthly share ownership data above 1 percent for each issuer, which was finalised on 3 March 2026.