OJK Committed to Continuing Capital Market Reforms Following MSCI’s Assessment

RRI.CO.ID, Jakarta - Indonesia’s capital market has retained its Emerging Market status as defined by Morgan Stanley Capital International (MSCI). The Financial Services Authority (OJK) reaffirmed its commitment to continuing and strengthening capital market reforms to enhance transparency, governance, and investor confidence.

The announcement follows MSCI’s 2026 Market Classification Review released on Wednesday, June 24. “This demonstrates how our reform achievements have received significant recognition, further solidifying the credibility and investability of the domestic capital market,” said OJK Executive Director for Capital Market, Derivatives, and Carbon Exchange Supervision, Hasan Fawzi, in Jakarta, as quoted by Antara.

Hasan said OJK appreciates MSCI’s decision to continue monitoring Indonesia’s progress on reforms. He emphasized that OJK, together with Self‑Regulatory Organizations (SROs), will ensure consistent implementation of reform programs.

He added that OJK will strengthen communication and regularly report reform progress to global index providers and international investors, including the World Bank, International Finance Corporation (IFC), and the Asia Securities Industry & Financial Markets Association (ASIFMA).

“In addition, we are open to receiving input and feedback to help us strengthen various aspects of the capital market,” Hasan said.

Hasan views MSCI’s recognition as a crucial foundation for sustainable capital market growth. Greater transparency, integrity, and stronger governance are expected to position the market as a reliable source of long‑term financing for the national economy.

“Thus, Indonesia’s capital market will increasingly serve as a key driver of long‑term capital formation and a trusted investment hub, supporting economic growth and financial system stability,” he said.

In its latest review, MSCI commended reforms implemented by OJK, the Indonesia Stock Exchange (IDX), and the Indonesian Central Securities Depository (KSEI).

These include enhanced shareholder transparency, more detailed investor classification, the High Shareholders Concentration (HSC) framework, and plans to raise the minimum free float threshold to 15 percent.

“While this announcement is a step in the right direction, what matters most to international institutional investors is the consistent implementation and sustained impact of these measures across the market,” MSCI wrote.

Although Indonesia’s classification remains unchanged as an Emerging Market, MSCI said it will continue to evaluate the effectiveness of reforms until its Index Review in November. If sufficient progress is not achieved, the agency has left open the possibility of consultations regarding Indonesia’s reclassification as a Frontier Market. ***