JAKARTA - Global stock index provider, Morgan Stanley Capital International (MSCI) has again maintained Indonesia's capital market status in the Emerging Markets group based on the results of the Market Classification Review announced on Wednesday, June 24.
PasarDana co-founder and capital market practitioner Hans Kwee assessed that the decision showed that overall MSCI's assessment of the Indonesian capital market was still quite positive.
According to him, this is the main factor that keeps Indonesia in the emerging market category.
Hans said the results of the MSCI Accessibility Review also showed that Indonesia was one of the markets that was relatively easy for foreign investors to access.
According to him, with these conditions, market concerns about the possibility of Indonesia being downgraded to a Frontier Market are considered to have been reduced.
"Investor concerns about the risk of Indonesia falling from emerging markets to frontier markets have disappeared in the MSCI Market Classification Review June 2026," he said in an official statement, Wednesday, June 24.
He explained that various reforms carried out in recent years have increased the transparency of the Indonesian capital market, one of which is through the openness of share ownership data for investors with ownership of more than 1 percent, the refinement of investor classification, and the development of the Ultimate Beneficial Owner (UBO) reporting system.
"Usually, the provision of share ownership data on other exchanges abroad is only above 5 percent. In addition, our investor classification has also increased from 9 to 39 and there is data on UBO obtained by request," he said.
However, Hans said, MSCI still pays attention to several aspects, especially related to the transparency of the ownership structure of shares and the practice of coordinated trading in the domestic capital market.
According to Hans, this has actually been part of the reform agenda being carried out by the Financial Services Authority (OJK) and the Self-Regulatory Organization (SRO) institutions.
"However, MSCI emphasizes the implementation of the rules and its consistency. MSCI will look at the consistency of the Indonesian capital market reform until the November 2026 review schedule," he explained.
Hans assessed that the reform agenda that has been carried out so far has basically answered a number of MSCI concerns that had emerged when Indonesia was given the Interim Freeze status in early 2026.
Even so, the success of the reform still depends on the consistency of its implementation in the long term.
"This means that the agenda for reforming the Indonesian capital market has actually answered MSCI's doubts at the end of January 2026 when Indonesia was first affected by the Interim Freeze, but it needs to be implemented consistently," he said.
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