OJK Chair Reports Strengthening of Indonesian Capital Market, Integrity Reform, and MSCI Assessment

The Financial Services Authority (OJK) has implemented integrity reforms in the Indonesian capital market since January 2026, as reported by the OJK Chair Friderica Widyasari Dewi at the Plenary Cabinet Meeting at the Presidential Palace Complex in Jakarta on Wednesday (10/21).

“We are improving transparency, liquidity, enforcement, and also synergy between institutions. The current Indonesian stock market is demonstrating resilience,” said the OJK Chair.

In the report, the OJK Chair also said issuers’ fundamentals in the Indonesian capital market are showing positive progress, adding that in the second quarter of 2026, company revenues grew by 15.9 percent, along with net profit growth.

“So, out of the 962 issuers listed in the Indonesian capital market, 74 percent have recorded profits. I want to show you all that the economic fundamentals and the fundamentals of companies listed in the Indonesian capital market are very strong,” she said.

She also reported the MSCI’s assessment of the Indonesian capital market, including the potential downgrade of Indonesia’s market classification from emerging market to frontier market or even standalone market. She said that based on MSCI’s report in June 2026, Indonesia has shown positive results across most assessment indicators.

“MSCI—Morgan Stanley Capital International is a global index provider, a reference for global funds and investment managers worldwide. When investors want to invest in a country, they will look to this global index provider as a reference,” she said.

“In general, in a review issued last June, they said that Indonesia shows positive results in 16 out of 18 indicators, compared to other emerging market countries,” she added.

Furthermore, Indonesia has several provisions supporting capital market transparency, including disclosure of share ownership and investor classification. Regarding ownership disclosure, Indonesia has implemented a reporting threshold of one percent, compared with other markets, which are above five percent.

“If we look at Indonesia compared to other countries, regarding the 15 to 25 percent initial capital offering (ICO) requirement, you can see that we have already disclosed one percent, while other markets are above five percent. Furthermore, regarding investor classification and types, we already have 39 types of investor classifications, which are very granular compared to other countries that don’t even provide details, and so on,” she said.

“These are the things we have done in relation to MSCI’s concerns and the steps we have taken,” she added.

Furthermore, Friderica conveyed the OJK’s firm actions to strengthen law enforcement in the Indonesian capital market. She said the OJK has imposed Rp1.5 trillion in sanctions on the parties involved. The OJK also identified two companies suspected of market manipulation, and law enforcement is pursuing action through close inter-agency coordination.

“Alhamdulillah, our market has rebounded in the past two days. This is domestic strength, Sir, because foreign investors have recorded net sales of Rp3.3 trillion in the last two days, compared to yesterday’s sales of Rp1 trillion. This is due to the domestic buybacks, and our retail investors are also extraordinary,” said Friderica.

“We will closely monitor and continue to make improvements so that our market becomes more credible, more liquid, more transparent, and can become a home for investment for our people in the future,” she added. (BPMI of Presidential Secretariat) (JAS/AW)