Indonesia Retains Emerging Market Status in MSCI Review, Govt Accelerates Reforms

RRI.CO.ID, Jakarta – Indonesia remains classified as an Emerging Market in Morgan Stanley Capital International’s (MSCI) 2026 Global Market Accessibility Review.

Coordinating Minister for Economic Affairs Airlangga Hartarto said the review reaffirms that Indonesia’s economic fundamentals and market access remain strong.

“We are optimistic that Indonesia will remain on track as an emerging market, and the government is committed to completing this reform agenda to maintain investor confidence,” Minister Airlangga said in an official statement in Jakarta on Friday, June 19, 2026, as quoted on the ministry’s website.

According to Minister Airlangga, MSCI continues to assess Indonesia’s market access, size, and liquidity as adequate. Furthermore, there were no concerns regarding foreign ownership restrictions in this year’s review.

He noted that areas requiring improvement include transparency in share ownership structures, the integrity of price formation, and the provision of market information in English. The government, together with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX), is accelerating reforms in these sectors.

Reforms already implemented include raising the free float requirement from 7.5 percent to 15 percent, strengthening transparency on ultimate beneficial owners (UBOs), disclosing data on shareholders with more than 1 percent ownership, accelerating the demutualization of the IDX, and deepening the market through expanded investments by pension funds and insurance companies.

The government is also reinforcing regulatory enforcement, issuer governance, and interagency coordination. These measures are supported by macroeconomic stability, including controlled inflation, a stable exchange rate, and prudent fiscal and monetary policies.

Ahead of MSCI’s Annual Market Classification Review announcement on June 23, Minister Airlangga urged market participants to remain calm and respond proportionally to the results. He added that the government continues to engage with MSCI and global investors to ensure reforms proceed consistently and sustainably. ***