MSCI Decides that Indonesia Capital Market Remains in Emerging Markets, This is the OJK's Response

JAKARTA - The Financial Services Authority (OJK) welcomes the decision of MSCI to maintain Indonesia in the Emerging Markets category in the MSCI 2026 Market Classification Review announced on Wednesday, June 24.

The Head of the Capital Market, Derivatives Finance, and Carbon Exchange Supervisory Board of OJK, Hasan Fawzi, said the decision was in line with the expectations of all stakeholders.

According to him, the results of the MSCI assessment are an impetus for OJK to continue to strengthen and accelerate the capital market reform agenda that has been carried out since the beginning of last year.

"The confirmation from MSCI is the result that we hope for together, and of course we welcome the results of the MSCI annual assessment positively. For us, this MSCI announcement is a momentum to continue, strengthen, and accelerate the agenda of capital market reforms that we have announced since the beginning of this year," he said in an official statement, Wednesday, June 24.

Hasan explained that MSCI appreciated the various reform steps taken by Indonesia.

He added that better data transparency is also considered to support MSCI's assessment process for the national capital market.

"This shows how our reform achievements have received meaningful recognition, thus further strengthening the credibility and investability of the domestic capital market," he explained.

Hasan said that in terms of market accessibility, Indonesia also obtained an excellent assessment, because according to the MSCI assessment, Indonesia is one of the capital markets with the best accessibility rate in the Asia-Pacific region, after China and Malaysia.

"In the results of the MSCI assessment related to market accessibility, in general Indonesia is one of the best rated among emerging markets in the Asia-Pacific region, after China and Malaysia," he explained.

However, MSCI stated that it would continue to monitor the development of Indonesian capital market reforms and the consistency of their implementation.

He added that OJK continues to be committed to continuing and strengthening various reform programs that have been running.

"This is certainly part of the review process of each institution, we appreciate it, and we ensure that we will continue to implement it consistently and strengthen all of our capital market reform programs," he said.

Since the beginning of the year, the reforms carried out have focused on increasing transparency, integrity, liquidity, and capital market governance.

Some of the steps that have been implemented include the provision of data on share ownership above 1 percent, more detailed investor classifications, and the development of the Ultimate Beneficial Owner (UBO) reporting system.

On the side of strengthening market integrity, OJK continues to increase supervision through the implementation of the High Shareholding Concentration (HSC) framework and enforcement of laws against various violations in the capital market.

"Ytd as of May 31, 2026, OJK has imposed sanctions on various violations in the capital market, both for delays and cases. The value of the fine sanctions in that period reached IDR 138.9 billion for 329 parties," he concluded.

In its announcement, MSCI confirmed that Indonesia remained in the Emerging Markets group along with a number of other Asia-Pacific countries such as China, India, South Korea, Malaysia, the Philippines, Taiwan, and Thailand.

MSCI also recognizes the various reforms carried out by the Self-Regulatory Organization (SRO), including increased disclosure of shareholder information, the implementation of HSC, more detailed investor classification, and an increase in the minimum free float limit to 15 percent.

However, MSCI still noted concerns from global institutional investors regarding the shareholding structure and indications of coordinated trading practices.

According to MSCI, these two factors can limit investors' ability to assess the true free float and rely on market prices as a reference in portfolio construction and index replication.