JAKARTA - Global stock index provider MSCI highlighted the information flow aspect of the Indonesian capital market in the MSCI 2026 Global Market Accessibility Review report.
This decision is based on investors' concerns regarding market accessibility, especially due to the lack of transparency regarding the ownership structure of listed companies.
MSCI assessed that foreign investors have not yet gained equal access to information because data on share ownership is not always fully available in English.
This condition is considered to hinder the ability of international investors to conduct investment analysis and decision-making.
In addition, MSCI also highlighted a number of other obstacles in the Indonesian financial market such as in the foreign exchange market, liberalization is still limited because there is not yet an efficient offshore currency market.
Foreign exchange transactions in the country are also still limited and must be associated with underlying securities or securities transactions.
In terms of clearing and settlement of transactions, foreign investors are not yet allowed to use the overdraft facility.
Meanwhile, the mechanism for the transfer of assets in kind can only be carried out under certain conditions.
MSCI also noted that stock lending activities are allowed, but only for certain stocks with a maximum contract period of 90 days.
Next, short selling practices are still allowed, but remain under various requirements and restrictions.
"Information flow: " + "to " - ". Concerns about investment capabilities remain due to limited transparency in the structure of share ownership and coordinated trading behavior that undermines the formation of proper prices. Detailed stock market information is not always disclosed in English," MSCI wrote in its report, Friday, June 19.
In its released report, MSCI stated that concerns about investment capabilities in Indonesia still continue due to the lack of transparency of share ownership and the existence of indications of coordinated trading and potentially disruptive to the process of forming fair prices, as well as detailed market information is not always available in English.
According to MSCI, this condition makes it difficult for global institutional investors to determine the actual number of free float shares and reduces the reliability of market prices as the basis for portfolio construction and index replication.
The MSCI Global Market Accessibility Review is a routine evaluation aimed at assessing the level of accessibility of various global capital markets and providing input to regulators regarding aspects that still do not meet international standards.
Despite these notes, Indonesia has so far maintained its status as an emerging market.
The results of the annual market classification review by MSCI will be announced on June 23, 2026, in conjunction with the publication of the MSCI Annual Market Classification Review 2026.
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