OJK Maintains Indonesia's Stock Market Status to Avoid Downgrade to Standalone Market, President Supports

JAKARTA, KOMPAS.com - Chair of the Board of Commissioners of the Financial Services Authority (OJK) Friderica Widyasari Dewi emphasized that Indonesia's stock market should not drop to the Standalone Market status, comparable to countries like Zimbabwe, Argentina, and Panama.

Friderica stated that Indonesia will fight to remain categorized as an Emerging Market. She mentioned that President Prabowo Subianto has supported efforts to maintain this position.

"No, we won’t drop to the Standalone Market. We are committed to keeping Indonesia an Emerging Market. We are supported by the President and all ministries so that we can continue to improve. Hopefully, we can maintain our current position," Friderica said at the Presidential Palace in Jakarta on Wednesday night (21/10/2026).

Friderica assured that reforms in Indonesia's capital market will continue.

They will work towards making Indonesia's capital market increasingly credible.

Moreover, with Prabowo's support already given, she stated, "We will continue these reforms. The more credible, liquid, and transparent we are, the more we become a home for long-term investment for the Indonesian people."

"The main point is that we are making improvements, not just because of a certain global index provider, but because it is our intention since January, in line with the President's directives, to make necessary improvements related to integrity, transparency, and liquidity," Friderica asserted.

Meanwhile, Friderica claimed that compared to other countries, Indonesia's stock market data is relatively solid.

"There might still be some areas lacking, especially regarding enforcement. However, last Friday, we announced the largest fine in the history of the capital market," she added.

Previously, the Indonesia Stock Exchange (BEI) planned to seek clarification from the global index provider, Morgan Stanley Capital International (MSCI), regarding the option of downgrading Indonesia's stock market classification from Emerging Market to Standalone Market.

BEI's CEO Jeffrey Hendrik stated that they, alongside OJK, have taken various concrete steps to enhance transparency, integrity, and the quality of Indonesia's capital market.

According to Jeffrey, these improvement measures have received positive appreciation and response from global investors as well as international index providers.

This reflects the ongoing commitment of the stock exchange authority and all stakeholders to strengthen the credibility and competitiveness of Indonesia's capital market.

Nevertheless, BEI will ask for further explanations from MSCI about the rationale and assessments behind the potential downgrade of the national capital market status.

"Considering the various advancements and reform measures undertaken, BEI will seek further clarification from MSCI regarding the rationale and assessments that led to this announcement," Jeffrey stated in a press release on Friday (16/10/2026).

Jeffrey emphasized that MSCI's announcement on October 15, 2026, is still part of the consultation process and has not yet reached a final decision.

The deadline for receiving input during this consultation process is set for April 30, 2027.

Moving forward, BEI will continue to coordinate with OJK and all stakeholders to ensure that securities trading in Indonesia's capital market occurs in an orderly, fair, and efficient manner.

"In the future, BEI will maintain close coordination with OJK and all related stakeholders to ensure that securities trading in the Indonesian capital market continues to be orderly, fair, and efficient, while also retaining the trust of both domestic and global investors," he concluded.