Story perspectives

Indonesia's Capital Markets Reform: Avoiding MSCI Downgrade

2/4/2026

Summary

Story summary

Indonesia is reforming its capital markets to address market manipulation ahead of a May 2024 deadline set by MSCI, as stated by Economic Minister Airlangga Hartarto.
The government aims to enhance transparency in shareholding structures following a significant sell-off.
MSCI warned of a potential downgrade from an emerging to a frontier market if improvements are not made.
Recent reforms include raising the minimum free float to 15% and promoting sovereign wealth funds to stabilize the market.

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Story summary

Indonesia is reforming its capital markets to address market manipulation ahead of a May 2024 deadline set by MSCI, as stated by Economic Minister Airlangga Hartarto.
The government aims to enhance transparency in shareholding structures following a significant sell-off.
MSCI warned of a potential downgrade from an emerging to a frontier market if improvements are not made.
Recent reforms include raising the minimum free float to 15% and promoting sovereign wealth funds to stabilize the market.