Antara News·Indonesia·Friday, October 23, 2026 at 08:29 AM UTC

MSCI report does not reflect RI's economic fundamentals: Minister

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Bayu Saputra, Cindy Frishanti Octavia

Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto said the MSCI report reflects governance issues in stock trading that need improvement, rather than Indonesia’s economic fundamentals or listed companies’ performance.

According to him, one of the aspects flagged by the rating agency is the requirement for a minimum 15 percent "free float," the portion of a company's shares held by the public.

"For Indonesia, the core issue is not related to economic fundamentals or the fundamentals of the listed companies themselves, but rather to the governance of the trading market, specifically concerning the free float of shares," Hartarto said in Jakarta on Friday.

He emphasized that capital market reforms remain ongoing.

He noted that the fundamentals of companies listed on the exchange remain strong, both in terms of profitability and dividend distribution.

The stages and progress of these capital market reforms should be communicated to the public so that the advancements made can be tracked.

However, Hartarto acknowledged that some companies have yet to meet the 15 percent free float requirement.

"We have until June 2027. Furthermore, our roadmap includes promoting the demutualization of the stock exchange. These are the various stages and progress updates that need to be shared with the public," he said.

Meanwhile, MSCI has initiated a consultation process with market participants regarding a proposed reclassification of the Indonesian capital market.

The consultation period will run until April 30, 2027, with a final decision scheduled to be announced before June 30, 2027.

MSCI has indicated that the reclassification plan will proceed if there is no clear evidence of improvements in the governance and functioning of the Indonesian capital market.

Since January 2026, MSCI has frozen certain changes to its Indonesian stock index following investor concerns regarding the transparency of share ownership structures and allegations of coordinated trading.

In response, the Financial Services Authority (OJK), together with the Indonesia Stock Exchange (IDX), announced a series of reform measures, including enhanced disclosure of share ownership and the development of a roadmap to raise the minimum free-float threshold to 15 percent.

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