RRI.CO.ID, Jakarta - The Indonesian capital market authority has expanded its investor classification from 9 to 27 classifications. This is part of the implementation of capital market reforms in response to Morgan Stanley Capital International (MSCI) policy.

“This expansion is to ensure a more granular, more detailed level of transparency to meet the requirements of one of the global index providers, MSCI,” said Hasan Fawzi, Acting Chief Executive of Capital Market, Derivatives, and Carbon Exchange Supervision at the Financial Services Authority (OJK), at the Indonesia Stock Exchange (IDX) building on Tuesday, February 3, 2026.

According to Hasan, the classification is based on investor characteristics, rather than general categories as before. Some of the new investor classifications include government, private equity, trustee banks, and venture capital.

In its decision letter, MSCI highlighted several issues, including the transparency of shareholder data, specifically the use of the term “others” in the IDX investor classification.

MSCI considered this term biased because it is difficult to ascertain the true identities of the shares' owners and controllers. This situation raises questions and indicates a lack of transparency in the Indonesian capital market.

MSCI has given the capital market until May 2026 to address the issues highlighted by MSCI. The Indonesian capital market authorities have already met with MSCI and submitted a plan for future improvements.

However, if the Indonesian capital market fails to implement the requested improvements, it will be downgraded to the Frontier Market category. This would place it on par with the stock exchanges of Pakistan or Bangladesh.

Based on data from the Indonesian Central Securities Depository (KSEI), the new structure consists of 27 investor classifications. The following is a complete list of the 27 investor classifications that KSEI will publish:

1. Private Equity.

2. Trustee Bank.

3. Venture Capital.

4. Government.

5. Sovereign Wealth Fund.

6. Investment Advisors.

7. Brokerage Firms.

8. Private Bank.

9. Investment Fund Selling Agent.

10. State-Owned Enterprises.

11. Permanent Establishment.

12. Limited Partnership.

13. Firm.

14. Peer-to-Peer Lending.

15. Sole Proprietorship.

16. State-Owned Company.

17. Public Company.

18. Social Organizations.

19. Central Bank.

20. Diocese.

21. Conference.

22. Congregation.

23. Cooperatives.

24. International Organizations.

25. Political Parties.

26. Partnership.

27. Educational Institutions. (Gusti Panji/Lasti Martina)