Indonesia’s Financial Services Authority (OJK) provided an update on its capital market reforms as MSCI consults on potentially reclassifying Indonesia from Emerging Market to Standalone Market. At an online dialogue with domestic and international institutional investors organized by Mandiri Sekuritas on Oct. 20, OJK Board of Commissioners Chair Friderica Widyasari Dewi emphasized implementation of the existing reform agenda. MSCI’s Oct. 15 announcement was not a final classification decision. Its final decision is scheduled for June 30, 2027. OJK Chief Executive for Capital Market, Financial Derivatives and Carbon Exchange Supervision Hasan Fawzi outlined measures under the eight priority reform programs being implemented with the Indonesia Stock Exchange and other self-regulatory organizations. These include gradually raising the minimum free float requirement to 15%, strengthening ultimate beneficial ownership transparency and expanding investor classifications from nine to 39 categories. The agenda also includes disclosure of shareholdings above 1% and publication of a High Shareholding Concentration list. Upcoming priorities include implementing the higher free float requirement and refining how shares with concentrated ownership are weighted in the Jakarta Composite Index, alongside further ownership transparency measures and improvements in listed company quality. The update also expanded on enforcement figures cited during OJK’s earlier dialogue with market participants. Administrative fines of approximately IDR 2.1 trillion announced on Oct. 16 concerned trading in DSSA, BREN and CUAN shares. Hasan emphasized that the investigations began well before MSCI’s announcement. Across 2026, OJK has sanctioned more than 971 parties, imposing approximately IDR 2.5 trillion in total fines, and completed 41 case examinations, with another 122 cases undergoing enforcement proceedings.
Indonesia's Financial Services Authority reiterates capital market reforms amid MSCI classification consultation
Indonesia’s Financial Services Authority updated institutional investors on ongoing capital market reforms as MSCI consults on a possible move from Emerging Market to Standalone Market status, with a final decision scheduled for June 30, 2027. Priorities include a phased increase in minimum free float to 15%, stronger ownership disclosure and revised index weighting for shares with concentrated ownership. OJK also clarified that investigations underlying IDR 2.1 trillion in recently announced fines predated MSCI’s announcement.