Business · Markets · 2 hrs ago
Indonesia’s OJK presses on with market reforms as MSCI weighs downgrade
Indonesia’s financial regulator says market reforms will continue as MSCI considers lowering the country’s market status.
The possible change would move Indonesia from an emerging market to standalone status.
OJK chief Friderica Widyasari Dewi said the reforms began in January under presidential direction, not because of MSCI.
The changes aim to improve market integrity, transparency and liquidity.
OJK says Indonesia compares well with standalone markets, but acknowledges concerns about enforcement and points to a recently announced record fine.
Indonesia is waiting for MSCI’s final decision, while OJK says it will keep working to retain emerging-market status.
Indonesia is accelerating capital market reforms as MSCI considers reclassifying the country from an emerging market to a standalone market.
OJK chair Friderica Widyasari Dewi said the reforms aim to improve credibility, liquidity and transparency.
She said the work began in January under the president’s instructions and was not prompted by MSCI alone.
MSCI opened a consultation on the potential reclassification on October 16, with a final decision expected by June 2027.
The rupiah weakened to Rp18,052 per US dollar on October 16, according to the Jakarta Interbank Spot Dollar Rate.
- Who
- Indonesia’s Financial Services Authority (OJK), led by Friderica Widyasari Dewi, is pursuing the reforms. MSCI is reviewing Indonesia’s market status.
- What
- Indonesia is pressing ahead with capital market reforms while MSCI considers reclassifying it from an emerging market to a standalone market.
- When
- OJK said the reforms began in January. MSCI opened its consultation on October 16, 2026, and expects a final decision by June 2027.
- Where
- Indonesia.
- Why
- OJK says the reforms are intended to improve market credibility, liquidity and transparency, and are part of a longer-term strategy rather than a response to MSCI alone.
MSCI
OJK
Market classification
MSCI
MSCI opened a consultation on potentially reclassifying Indonesia from an emerging market to a standalone market.
OJK
OJK says it will keep working to retain emerging market status and that MSCI is not the reason for its reforms.
Assessment of the market
MSCI
MSCI is considering a reclassification; the articles do not state its specific grounds.
OJK
Friderica said the case for a downgrade was not strong compared with standalone markets, while acknowledging that enforcement still needed improvement.
OJK says it began addressing capital market shortcomings under the President’s instructions.
MSCI opened a consultation on potentially reclassifying Indonesia, and the rupiah weakened to Rp18,052 per US dollar.
Friderica said the reforms would continue and that Indonesia would seek to retain emerging market status.
MSCI is expected to make a final decision on the potential reclassification.
- MSCI consultation opened
- October 16, 2026
- Final decision expected
- June 2027
- Rupiah exchange rate
- Rp18,052 per US dollar on October 16, according to JISDOR
- Administrative fines
- Rp2.1 trillion imposed on three publicly listed companies
- Planned IDX disclosure threshold
- Share affiliations involving ownership stakes of 1 percent or more
2 sources
What people are saying
We are making every effort to ensure Indonesia remains an emerging market
We are carrying out improvements, not because of one particular global index provider, but because since January, in line with the President’s instructions, we have been addressing shortcomings in integrity, transparency and liquidity
Rather, since January—following the President’s instructions—we have been addressing existing shortcomings to make Indonesia’s capital market increasingly credible, liquid, and transparent