Indonesian Market Receives Positive Review, but There Are Some Concerns: OJK

RRI.CO.ID, Jakarta - Indonesia’s capital market has maintained most of its accessibility indicators in the eyes of global investors, though several aspects of transparency and information flow remain areas of concern for future improvement.

The Financial Services Authority (OJK) said it will continue its capital market reform agenda to enhance transparency, integrity, and competitiveness. The statement came in response to the findings of the Morgan Stanley Capital International (MSCI) Global Market Accessibility Review 2026.

“We have reviewed the results of the MSCI Global Market Accessibility Review 2026, which show that the majority of Indonesia’s market accessibility aspects remain intact and have not changed significantly compared to last year. However, there are also recommendations for future improvements in the capital market,” said Hasan Fawzi, Chief Executive of Capital Market, Derivatives, and Carbon Exchange Supervision at the OJK, in Jakarta on Friday, June 19, 2026, as quoted by Antara.

MSCI’s assessment found that 10 out of 18 criteria received a “double plus” (++) rating, reflecting alignment with global best practices. Six criteria received a “plus” (+) rating, while the Information Flow and Foreign Exchange Market Liberalization Level aspects were rated negative (-), signaling areas that require improvement.

“Regarding the Information Flow aspect, we view this feedback as part of a constructive evaluation process and in line with the capital market reform agenda currently being jointly implemented by the OJK, the Indonesia Stock Exchange (IDX), the Indonesian Central Securities Depository (KSEI), the Indonesian Securities Clearing House (KPEI), and all industry participants,” Hasan said.

OJK noted that MSCI also acknowledged Indonesia’s progress, including improvements in the foreign exchange market liberalization category, though further refinement is still needed.

As a follow-up, OJK is strengthening internal coordination and working with Bank Indonesia to balance improved market access with risk mitigation. These policies are designed to remain consistent with the national macroprudential framework.

“Based on feedback from market participants and global index providers such as MSCI and FTSE, the reforms that have been implemented have gained recognition and are already being used as variables in determining index constituents or investment portfolio policies,” Hasan said.

He explained that reforms include improving the quality of shareholding data, enhancing information transparency, developing beneficial ownership reporting, and strengthening trading oversight. These measures aim to bolster investor protection and market confidence.

“In the future, OJK will continue to strengthen constructive engagement and dialogue with MSCI, FTSE Russell, and other global index providers and international investors to ensure the global investment community fully understands the reforms that have been and are being implemented,” he said.

Hasan emphasized that MSCI’s assessment is part of a constructive improvement process. “With the consistency of ongoing reforms, we are optimistic that the quality and competitiveness of Indonesia’s capital market will continue to strengthen,” he said. ***