Jakarta (ANTARA) - The Indonesian government remains confident that the country will retain its “emerging market” status ahead of an upcoming global classification review, despite a recent criteria downgrade by global index provider MSCI Inc.
In its 2026 Global Market Accessibility Review, MSCI maintained Indonesia’s emerging market status but downgraded its “Information Flow” score from positive to negative. Only Indonesia and Türkiye experienced the change, reflecting areas for improvement in stock ownership transparency and price formation.
Coordinating Minister for Economic Affairs Airlangga Hartarto said the report should not be seen as a setback, arguing it reflects ongoing progress in financial market reforms.
“MSCI’s findings confirm that Indonesia’s economic fundamentals and market access remain strong. The focus is on transparency and market integrity, and that is what matters,” he said on Friday.
According to the report, Indonesia’s market accessibility, size, and liquidity remain solid, with no restrictions on foreign ownership.
However, improvements are needed in share ownership transparency and price formation, areas the government is actively addressing.
Airlangga said the government is working closely with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) on a series of market reforms. These include raising the minimum free float requirement for listed companies from 7.5 percent to 15 percent to improve liquidity and trading efficiency.
Authorities are also strengthening ownership transparency through a beneficial ownership registry and regular disclosure of shareholders holding more than a 1 percent stake.
In parallel, reforms are underway to restructure the stock exchange ecosystem and encourage pension funds and insurance firms to allocate up to 20 percent of assets into blue-chip equities.
The government is also tightening corporate governance standards, strengthening enforcement, and improving inter-agency coordination.
Airlangga said these reforms are supported by strong macroeconomic fundamentals, including stable exchange rates, controlled inflation, and prudent fiscal management.
Bank Indonesia recently cut its benchmark interest rate to 5.75 percent in June 2026 to support economic stability and investor confidence amid global uncertainty.
“The combination of structural capital market reforms and macroeconomic stability will continue to strengthen the attractiveness and credibility of Indonesia’s market for global institutional investors,” he said.
MSCI is scheduled to announce its final decision on Indonesia’s market status during its Annual Market Classification Review on June 23, 2026.
Airlangga urged market participants to remain calm as the government continues coordination with MSCI and global investors ahead of the announcement.
Related news: Indonesia Stock Exchange raises free float threshold for IPOs
Translator: Bayu Saputra, Yashinta Difa Editor: M Razi Rahman Copyright © ANTARA 2026
Read the full article at Antara News →📄Source document: MSCI Inc. 2026 Global Market Accessibility Review
7 reports
Antara NewsState / PublicCenter2 days agoIndonesia's government expresses confidence in retaining its 'emerging market' status following a recent downgrade by MSCI Inc. in its 2026 Global Market Accessibility Review. While Indonesia's 'Information Flow' score was downgraded from positive to negative, the government emphasizes continued progress in financial market reforms and highlights the strength of Indonesia's market accessibility, size, and liquidity. Officials stated they are collaborating with regulatory bodies to address issues related to share ownership transparency and price formation.
Bias read (Center): The article presents the government's perspective without overtly favoring one side. It includes direct quotes from officials and mentions areas needing improvement without suggesting blame or criticism. The tone is balanced, focusing on facts and the government's response rather than taking a clear
Official sources cited
- organisation MSCI Inc. 2026 Global Market Accessibility Review
- government Coordinating Minister for Economic Affairs Airlangga Hartarto
Tempo (English)IndependentCenter2 days agoThe article discusses whether MSCI might downgrade Indonesia to a frontier market, with experts providing their perspectives on the potential implications.
Bias read (Center): The article presents expert opinions without overtly favoring any particular viewpoint. It does not use loaded language or selectively cite sources to support a specific argument.
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Bias read (Center): The article reports on economic indicators without apparent ideological framing. It does not use loaded language, present one-sided sourcing, or omit relevant context. The focus is on market performance ahead of an expected event, which is typically reported neutrally.
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