PKS President Promotes Reform of Capital Market Governance in Indonesia

JAKARTA, KOMPAS.com - The President of the Prosperous Justice Party (PKS), Almuzzammil Yusuf, urged for a reform of the capital market governance in Indonesia.

He stated that the warning from Morgan Stanley Capital International (MSCI) should serve as a pivotal moment for such reform.

"PKS encourages the relevant authorities to carry out a complete reform of the capital market governance," Almuzzammil said during a political speech at the opening of the National Technical Guidance (Bimteknas) for PKS Legislative Members and Regional Heads across Indonesia, as quoted from a broadcast on PKS TV, Monday (19/10/2026).

Almuzzammil emphasized that trust is a key asset for the country, significantly determining the willingness of the public and businesses to invest.

However, the warning from MSCI has caused public anxiety regarding investment in the capital market.

According to Almuzzammil, the dynamics of the capital market need serious attention due to their relationship with public confidence in the national economy.

PKS believes that trust is a critical factor in maintaining economic stability.

Therefore, PKS advocates for improvements in capital market governance to become a priority agenda necessitating serious attention.

The hope is that Indonesia's capital market can operate in a healthy, transparent manner that earns the trust of both the public and investors.

"Trust is the main capital of a nation. In economics, trust determines the courage of society and the business sector to invest," Almuzzammil added.

As a point of information, on Friday (16/10/2026), MSCI announced a consultation regarding the proposal to change the classification of Indonesia's stock market from emerging market to standalone market.

Since January 2026, MSCI has expressed concerns over the transparency of share ownership and trading behavior in Indonesia's capital market.

At that time, MSCI threatened to downgrade Indonesia to a frontier market status, generally a category of markets that have more limited access to global investment compared to emerging markets.

However, MSCI deemed there has been no sufficient progress in addressing issues of transparency in share ownership and allegations of coordinated trading behavior.

According to the agency, even a downgrade to frontier market status does not sufficiently reflect the extent of the issues at hand. Therefore, MSCI is considering a change to the standalone market category.

If implemented, this change could cause Indonesian shares to lose their position in the MSCI indices for both emerging and frontier markets, which are benchmarks for various global investment funds.

MSCI stated that the final decision regarding this classification change proposal will be announced by June 30, 2027, at the latest.