Business · Markets · 1 day ago
Indonesia Says MSCI Concerns Focus on Market Governance, Not Company Fundamentals
Indonesia says MSCI’s concerns are about stock-market governance, not the strength of its economy or listed companies.
Coordinating Economic Affairs Minister Airlangga Hartarto made the point in Jakarta as MSCI consults investors on a possible change to Indonesia’s market classification.
74% of 962 listed companies reported profits in the second quarter of 2026, according to the Financial Services Authority, which also said company revenue rose 15.9%.
MSCI has raised concerns about ownership transparency and coordinated trading, and has paused some changes to its Indonesian stock index since January 2026.
Indonesia’s regulator and stock exchange are pursuing reforms to improve ownership disclosures, market transparency, liquidity and enforcement, including a plan to raise the minimum free float to 15%.
The regulator says it imposed Rp1.5 trillion in sanctions over coordinated trading and is investigating two other companies for suspected market manipulation.
MSCI’s consultation runs through April 30, 2027, with its final decision due before June 30; it says the reclassification plan will proceed unless clear evidence shows market governance has improved.
Indonesia’s economic affairs minister says MSCI’s concerns about the country’s stock market focus on trading governance, not company or economic fundamentals.
Airlangga Hartarto said some companies have yet to meet the 15 percent minimum free-float threshold.
Indonesia’s financial regulator says 74 percent of 962 listed companies reported profits in the second quarter of 2026.
MSCI is consulting market participants on a possible change to Indonesia’s market classification, with a final decision due before June 30, 2027.
Indonesian regulators say they are pursuing reforms to improve market transparency, liquidity and enforcement.
- Who
- Coordinating Minister for Economic Affairs Airlangga Hartarto and Financial Services Authority chair Friderica Widyasari Dewi. MSCI is reviewing Indonesia’s market classification.
- What
- Indonesian officials say MSCI’s concerns relate to market governance rather than company fundamentals, while regulators report strong company performance and ongoing reforms.
- When
- Airlangga spoke on October 23, 2026. MSCI’s consultation runs through April 30, 2027, with a decision due before June 30, 2027.
- Where
- Jakarta, Indonesia.
- Why
- MSCI has raised concerns about transparency in share ownership and coordinated trading, and is consulting on a possible market reclassification.
Indonesian officials
MSCI
Market assessment
Indonesian officials
Airlangga says MSCI’s concerns are about trading governance, not economic or issuer fundamentals. OJK says company fundamentals are strong.
MSCI
MSCI is consulting on a possible change to Indonesia’s market classification and says the plan will proceed unless clear evidence shows improvements in market governance and functioning.
OJK began reforms to strengthen market integrity, including transparency, liquidity and enforcement.
Airlangga said MSCI’s concerns focused on trading governance and that some companies still had not met the 15 percent free-float requirement.
MSCI’s consultation with market participants is scheduled to end.
MSCI is scheduled to announce its final decision on the proposed market reclassification.
- Free-float threshold
- 15 percent
- Listed companies reporting profits
- 74 percent of 962 companies in the second quarter of 2026
- Company revenue growth
- 15.9 percent in the second quarter of 2026
- OJK coordinated-trading sanction
- Rp1.5 trillion
- MSCI consultation ends
- April 30, 2027
- Final decision deadline
- Before June 30, 2027
3 sources
What people are saying
For Indonesia, this is not related to economic fundamentals, nor to issuer fundamentals, but is more about governance within the trading market specifically for free float shares
I want to show everyone that the economic fundamentals and also the fundamentals of companies listed on the Indonesian capital market are very strong