OJK respects MSCI plan to reclassify Indonesia's market - ANTARA News Jawa Timur

Jakarta (ANTARA) - Indonesian Financial Services Authority (OJK) Board of Commissioners Chair Friderica Widyasari Dewi here on Friday said the authority respected global index provider Morgan Stanley Capital International's (MSCI) plan to begin consultation on reclassifying Indonesia's status.

OJK also noted and paid serious attention to MSCI's assessment of areas that still need improvement going forward. In addition, OJK respects the independence of global index providers, including MSCI, and values input from all stakeholders.

"We believe the domestic capital market remains prospective and attractive. This is supported by Indonesia's well-maintained economic fundamentals, a growing investor base, competitive stock valuations, and issuers' fundamental performance that is generally still positive," Dewi said in an official statement.

OJK noted the announcement released by MSCI on Thursday (October 15) local time, in which the index provider said it would begin a consultation period on a proposal to reclassify Indonesia's status.

In the announcement, MSCI again acknowledged the Indonesian capital market reform initiatives already underway.

These include publication of shareholdings above 1 percent, improved granularity of investor classification, announcement of High Shareholding Concentration, and a new policy raising the minimum free float limit.

OJK Chief Executive for Capital Market, Financial Derivatives, and Carbon Exchange Supervision Hasan Fawzi said MSCI's input in the announcement was also in line with the Indonesian Capital Market Integrity Reform Acceleration Action Plan, including consistent and sustainable law enforcement.

"OJK is committed to continuing to strengthen law enforcement in the capital market sector in an effort to uphold market integrity, with effective coordination and synergy with all related parties," Fawzi said.

Going forward, OJK and self-regulatory organizations (SRO) will continue constructive engagement with index providers and global institutional investors.

This continuous engagement is carried out to ensure Indonesian authorities can communicate the latest progress of capital market reforms, as well as obtain input and policy recommendations for continuous improvement.

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