MSCI Assessment a Momentum to Strengthen Indonesia's Capital Market Reforms: Indef Economist

An economist from the Institute for Development of Economics and Finance (Indef) views MSCI's assessment of Indonesia's capital market as an opportunity to bolster ongoing reforms. Abra Talattov stated that the global index provider's evaluation should be interpreted as input for continuing improvements, rather than a signal of fundamental decline in the market's attractiveness.

Talattov emphasized that the issues MSCI highlighted are not new, and that steps to enhance information transparency, market governance, investor protection, and infrastructure have been underway for years. He appreciated the MSCI's assessment for aligning with investor expectations, particularly after recent concerns about potential rating changes. The economist noted that domestic economic indicators remain robust, with first-quarter 2026 GDP growth at 5.61%, May inflation at 3.08%, and foreign exchange reserves at $144.9 billion.

"These conditions show that national economic and financial sector stability is maintained amidst ongoing global uncertainty," Talattov said. He added that investors also consider policy direction, regulatory certainty, governance quality, and medium-to-long-term investment prospects. Therefore, continued efforts to strengthen information transparency and market quality are crucial for sustained investor confidence.