Antara News·Indonesia·Thursday, October 22, 2026 at 12:56 AM UTC

Indonesia pledges tangible reforms to boost capital market confidence

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Rizka Khaerunnisa, Yashinta Difa

Jakarta (ANTARA) - Indonesia's Financial Services Authority (OJK) said its priority is making capital market reforms deliver measurable results that improve market quality and investor confidence, as MSCI considers downgrading the country's market status.

"Investor confidence must be built through concrete actions, not merely statements," OJK Chairperson Friderica Widyasari Dewi said at a Mandiri Sekuritas investor dialogue in Jakarta.

According to a press statement issued here Wednesday, she said the OJK is committed to developing an Indonesian capital market that is fair, transparent, competitive, and possesses global credibility.

MSCI announced October 16 a consultation on reclassifying Indonesia from an "Emerging Market" to a "Standalone Market."

OJK Capital Market Supervision Chief Hasan Fawzi said the announcement is part of an ongoing consultation, not a final ruling.

MSCI is accepting feedback through April 30, 2027, with a final determination expected June 30, 2027.

The OJK said it respects MSCI's independent assessment, having held 16 structured sessions with the index provider between February and October 2026.

It said market fundamentals remain robust, with capitalization of about $589 billion, the second largest in ASEAN, and 31.1 million investors.

Listed companies posted revenue growth of 15.9 percent and net profit growth in the year to June 2026.

The OJK is also strengthening coordination with the government, discussed at an October 19 meeting of President Prabowo Subianto, the OJK and the Financial System Stability Committee (KSSK).

With self-regulatory organizations, including the Indonesia Stock Exchange, the OJK is implementing an eight-point reform agenda to enhance liquidity, governance, transparency and law enforcement.

Reforms include gradually raising minimum free float to 15 percent, tighter beneficial ownership transparency, investor categories expanded from nine to 39, mandatory disclosure of stakes above one percent and publishing names of high-concentration companies.

"Capital market reform does not end with the refinement of regulations or the announcement of policies. Our priority is to ensure consistent implementation," Hasan said.

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