After MSCI Review, OJK to Accelerate Capital Market Reform Agenda

Jakarta: In light of MSCI’s 2026 Market Classification Review, the Financial Services Authority (OJK) will continue to strengthen and accelerate Indonesia’s capital market reform agenda, launched earlier this year.
 
MSCI acknowledged the transparency reforms implemented by OJK, the Indonesia Stock Exchange (IDX), and the Indonesian Central Securities Depository (KSEI) in its 2026 Market Classification Review.
 
The reforms include improved disclosure of shareholders with ownership above one percent, more detailed investor classification, the implementation of the High Shareholder Concentration (HSC) framework, and a roadmap to increase the minimum free float requirement to 15 percent.
 
“Our reforms are receiving significant recognition, further strengthening the credibility and investment attractiveness of the domestic capital market,” remarked Hasan Fawzi, Chief Executive of the Capital Market, Financial Derivatives, and Carbon Exchange Supervisory Agency, in an official statement in Jakarta, as quoted by Antara on Wednesday, June 24, 2026.
 
“With this (recognition), Indonesia’s capital market will serve as a key driver of long-term capital formation and a trusted investment hub supporting economic growth and national financial system stability,” he added.
 
Hasan expressed appreciation for MSCI's decision to continue monitoring Indonesia's capital market reform agenda. OJK has ensured that all reform programs will be implemented consistently and further strengthened. It also noted that the global financial institution was beginning to utilize more transparent data as an input in its assessment process.
 
Moving forward, OJK, along with Self-Regulatory Organizations (SROs), will continue constructive communication and engagement with global index providers and international investors, to ensure that the reform agenda is comprehensively understood by the global investment community.
 

Reforms as a Foundation for Market Strengthening

 OJK will hold forums facilitated by the World Bank, the International Finance Corporation, and ASIFMA, among others, to strengthen communication and engagement. Through these forums, OJK will be able to convey developments and achievements in capital market reforms directly to global investors.
 
“We are opening up opportunities to receive input and feedback that will help us strengthen various aspects of the capital market,” Hasan explained.
 
“While this recognition is a step in the right direction, what matters most for international institutional investors is the consistent implementation of these measures across the market,” MSCI wrote.
 
MSCI emphasized that it will continue to evaluate the scope, consistency, and effectiveness of Indonesia's capital market reforms until its November 2026 Index Review.
 
If progress is deemed insufficient by then, MSCI may consider various options, including reclassifying Indonesia from an Emerging Market to a Frontier Market.
 
To date, MSCI has not altered Indonesia's classification; the country remains an Emerging Market.
 
(Jonathan Sianto)