MSCI notes on Indonesia's capital market, OJK confirms ongoing reforms

Indonesia's financial regulator, OJK, is committed to advancing reforms aimed at strengthening the transparency, integrity, and competitiveness of its capital markets. This commitment follows the MSCI Global Market Accessibility Review 2026, which identified specific areas needing enhancement.

Hasan Fawzi, Head of OJK's Capital Market, Derivative Finance, and Carbon Exchange Supervision, stated that the MSCI review indicated most aspects of Indonesia's market accessibility remain stable compared to the previous year. However, the review also provided crucial feedback for future improvements. "OJK notes the results of the MSCI Global Market Accessibility Review 2026, which shows that generally, the majority of Indonesia's market accessibility aspects remain maintained and have not undergone significant changes compared to the previous year, but there are also notes for the future improvement of the capital market," Fawzi said.

According to the MSCI assessment, 10 out of 18 criteria met global best practices, earning a "++" rating. Six criteria received a "+" rating, signifying a need for further enhancement. Notably, "Information Flow" within the Market Infrastructure segment and "Foreign Exchange Market Liberalization Level" received negative ratings. Fawzi indicated that the feedback on information flow aligns with the capital market reform agenda OJK is currently pursuing with the Indonesia Stock Exchange (IDX), KSEI, KPEI, and industry stakeholders.

"Regarding the Information Flow aspect, we view this input as part of a constructive evaluation process and in line with the capital market reform agenda that is currently underway," Fawzi added. OJK also recognized MSCI's acknowledgment of improvements made by Indonesia, including reduced concerns regarding foreign exchange market liberalization. Despite these advancements, further enhancements in this area are still deemed necessary.