MSCI Status Shows Indonesia's Strong Market Accessibility, Airlangga Says

Indonesia has successfully maintained its Emerging Market status following the 2026 MSCI Market Classification Review, a decision Coordinating Minister for Economic Affairs Airlangga Hartarto hailed as a testament to the nation's robust economic fundamentals and accessible capital market.

Hartarto emphasized that the MSCI review serves as a crucial moment to accelerate ongoing reforms within Indonesia's capital market. He noted that retaining the Emerging Market status confirms that the national economy and its market accessibility meet the required criteria. The government expressed appreciation for MSCI's feedback, viewing it as a collaborative effort to improve the quality of the capital market.

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The government appreciates MSCI's feedback as part of our collective effort to improve the quality of the capital market.

The administration's focus remains on ensuring that reform agendas translate from policy announcements into consistent execution. The goal is to achieve tangible impacts on market transparency, integrity, and investor confidence. Hartarto expressed optimism that through steady reforms, underpinned by strong economic fundamentals and stable macroeconomic conditions, Indonesia's capital market will become increasingly transparent, efficient, and credible.

Global index provider MSCI Inc. released the results of its 2026 review on June 23, 2026, local time. In this year's assessment, MSCI decided against downgrading Indonesia or initiating consultations for a potential reclassification from Emerging Market to Frontier Market. This decision reaffirms Indonesia's position in the global investment landscape, maintaining its status for international investment portfolios. The government perceives this outcome positively, acknowledging that while market accessibility remains intact, MSCI's specific comments provide valuable input for strengthening the governance of the national capital market.

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The government views the review through a positive yet balanced lens. Preserving the Emerging Market status demonstrates that Indonesia's overall market accessibility remains fully intact, while specific notes from MSCI offer constructive input to tighten the governance of the national capital market.