JAKARTA - Indonesia has maintained its status as an emerging market in the results of the MSCI 2026 Market Classification Review. Behind the positive news, global index provider MSCI still gives an important note regarding the transparency of share ownership and trading integrity in the Indonesian capital market.
The decision, which was announced on June 23, 2026, also ensures that Indonesia is not included in the list of countries being reviewed for downgrade to Frontier Market, a group of markets with development levels below Emerging Markets. Thus, Indonesia remains one of the global investment destinations.
The decision is a positive signal for the Indonesian capital market amid uncertainty in the global economy. However, the government acknowledges that there are still a number of improvements that must be completed to strengthen investor confidence.
In its report, MSCI noted that global institutional investors still highlight the openness of the shareholding structure and alleged coordinated trading. This condition is considered to affect the assessment of free float, i.e. the number of shares that are actually circulating and can be traded publicly, as well as affecting the formation of stock prices in the market.
Even so, MSCI also appreciates a number of reforms that have been carried out by the government together with the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and the Central Securities Depository of Indonesia (KSEI).
The reforms include increasing the openness of shareholders with ownership of more than one percent, refining the classification of investors, implementing the High Shareholding Concentration (HSC) framework to detect concentration of share ownership, and gradually raising the minimum limit of free float to 15 percent.
In addition, the government also strengthened the governance of listed companies, increased supervision of stock trading, and deepened the financial market to expand the investor base and increase liquidity.
The government emphasized that all reforms would be accelerated before the MSCI Index Review cycle in November 2026. The focus includes increasing transparency of share ownership, strengthening trading integrity, improving corporate governance, to more effective law enforcement.
The government will also continue to communicate with MSCI and the global investor community so that the various improvements that have been made are reflected in the assessment of the Indonesian capital market.
Coordinating Minister for the Economy Airlangga Hartarto said Indonesia's status as an emerging market shows that the fundamentals of the national economy and the accessibility of the capital market are still maintained.
"Our focus is to ensure that every reform agenda does not stop at the policy level, but is actually implemented consistently so that it has a real impact on transparency, market integrity, and investor confidence," said Airlangga, quoted from an official statement, Thursday (25/6).
The government is optimistic that reforms that are carried out consistently, supported by macroeconomic stability, controlled inflation, healthy fiscal conditions, and coordination of fiscal and monetary policies, will make the Indonesian capital market more competitive and maintain its position as one of the emerging markets that are attractive to global investors.
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