MSCI Gives Note on Information Flow, Government Accelerates Capital Market Reform

Coordinating Ministry for Economic Affairs

JAKARTA - Global index provider MSCI Inc. has again placed Indonesia in the emerging market category based on the MSCI 2026 Global Market Accessibility Review report released on June 18, 2026.

In the report, MSCI adjusted the assessment of Indonesia in the Information Flow aspect, from the previous status of "+", to "−".

However, Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that the record did not change the fundamentals of the Indonesian market and instead became an important reminder to continue to accelerate the ongoing capital market reform agenda.

Airlangga emphasized that Indonesia's market access, market size, and liquidity level were still considered adequate by MSCI.

According to him, MSCI's main concern at this time is the aspect of market transparency and integrity, which is indeed the focus of government reform together with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX).

"The MSCI record actually confirms that Indonesia's economic fundamentals and market access remain strong. What is of concern is the aspect of market transparency and integrity, and this is where the Government together with OJK and BEI have and continue to carry out reforms in concrete terms, starting from adjusting free float, openness of end-of-benefit owners, to deepening the market. We are optimistic that Indonesia will remain on the emerging market track, and the Government is committed to completing this reform agenda to maintain investor confidence," he said in his statement, quoted Sunday, June 21.

MSCI noted that there were no issues related to foreign ownership restrictions in this year's assessment, but rather, the room for improvement was directed more towards increasing the openness of the share ownership structure, strengthening the integrity of the formation of prices in the market, and providing market information in English that is more accessible to global investors.

Overall, MSCI assessed that the number of increases in market accessibility in the group of emerging countries this year was more than the decline.

As for all countries that fall into the emerging market category, only Indonesia and Turkey have experienced adjustments to the accessibility assessment in 2026. However, this change does not affect Indonesia's status as an emerging market, because the official decision regarding market classification will be announced by MSCI in the Annual Market Classification Review on June 23, 2026.

The government together with OJK and BEI make strengthening market transparency and integrity a top priority, and a number of policies that have been and are being implemented include:

Free float policy from 7.5 percent to 15 percent to increase market liquidity, (effective March 2026, gradual fulfillment); Transparency of ultimate beneficial owners (Ultimate Beneficial Owner/UBO) through the development of systems and openness of ownership (already in place, continues to be strengthened); Transparency of shareholders with ownership above 1 percent (already in place, regular publication since March 2026); Acceleration of demutualization of PT Bursa Efek Indonesia/BEI (in process); Deepening of the integrated market through an increase in the investment limit for shares for pension funds and insurance companies to 20 percent with a focus on LQ45 shares; Strengthening of enforcement of rules and sanctions; Improvement of corporate governance; and Strengthening of synergy among stakeholders.

The government believes that the combination of structural reforms of the capital market and macroeconomic stability will continue to strengthen the attractiveness and credibility of the Indonesian market in the eyes of global institutional investors.

In the external sector, the government together with Bank Indonesia continues to maintain market stability and confidence through various measured policies.

The steps include adjusting the reference interest rate to 5.75 percent in June 2026, strengthening the foreign exchange market, carefully managing state financing, including the issuance of foreign currency government bonds, and improving coordination of fiscal and monetary policies.

According to him, the combination of structural reforms in the capital market and macroeconomic stability will further strengthen the attractiveness of the Indonesian market in the eyes of global investors while increasing the credibility of the domestic financial market.

In addition, he also appealed to market participants to respond to the results of the MSCI review in proportion as the government continues to coordinate with MSCI and the international investor community continues to be carried out to ensure that the reform agenda is consistent before the announcement of the market classification on June 23, 2026 and in the next review cycle.