MSCI Extends Indonesia Index Suspension; OJK Responds

Morgan Stanley Capital International's (MSCI) decision to extend the temporary suspension of the Indonesian stock index, as reported by Tempo, has elicited a measured response from Indonesia's Financial Services Authority (OJK). While the suspension continues, the OJK emphasizes that MSCI acknowledges the significant strategic steps taken to bolster the Indonesian capital market's transparency and integrity.

“

The strategic initiatives mentioned above are part of continuous efforts to improve the quality of market governance, strengthen investor protection, and drive the Indonesian capital market to become more credible, transparent, and globally competitive.

From the OJK's standpoint, MSCI's recognition of initiatives like increased transparency of share ownership, refined investor classifications, and a higher free float limit is a positive signal. Chairman Friderica Widyasari Dewi views this as validation of Indonesia's policy direction, underscoring a commitment to consistently implement and strengthen reforms through collaboration with global market players.

“

In the future, the implementation of reform measures will be consistently and measurably maintained, and strengthened through active coordination with various parties, including global market players.

The core of the issue lies in MSCI's ongoing assessment of the 'scope, consistency, and effectiveness' of Indonesia's reform measures. MSCI's decision to maintain existing measures for the May 2026 index review—freezing increments on Foreign Inclusion Factors (FIF) and Number of Shares (NOS), not applying index additions, and avoiding upward segment migrations—indicates a cautious approach. Furthermore, MSCI's potential use of shareholder data above 1 percent to adjust free float estimates signals a focus on granular market data.

“

MSCI is assessing the scope, consistency, and effectiveness of data sources, as well as new measures in the context of determining free float and broader investability assessment.

Tempo's reporting highlights the Indonesian perspective: the OJK is actively engaging with MSCI and global market players to ensure reforms are understood and effectively implemented. The narrative is one of persistent effort and dialogue, aiming to convince international index providers of the Indonesian market's enhanced credibility and global competitiveness. This contrasts with a purely external view, emphasizing Indonesia's proactive role in shaping its market's international perception and accessibility.

“

This treatment is the same as other countries' markets.