The Indonesian Financial Services Authority (OJK) announced positive results from the FTSE Russell evaluation, confirming Indonesia's status as a secondary emerging market. This announcement was made on April 7, 2026, where the authority noted that this classification places Indonesia in the same category as major countries like China and India.
FTSE Russell also confirmed that Indonesia is not on the watchlist, reflecting the stability of the Indonesian financial market. Agus Firmansyah, Head of Monitoring and Policies at OJK, expressed optimism about this evaluation, indicating that the results reflect efforts made through the implementation of eight action plans aimed at enhancing the integrity of the financial market in Indonesia.
Details of the Evaluation
In its assessment, FTSE Russell confirmed that Indonesia has taken multiple reformative steps aimed at enhancing transparency, integrity, and market governance. It noted that these reforms will remain under continuous monitoring throughout their implementation process. Four proposals to enhance transparency in the financial market have been completed and communicated to global index providers.
Transparency has also been enhanced through reports on beneficial owners of shareholders owning 10% or more of the shares. These steps reflect Indonesia's commitment to improving the investment environment and increasing investor confidence.
Background & Context
Historically, Indonesia has witnessed significant transformations in its financial market, consistently striving to improve its ranking in global indices. The FTSE Russell ranking is an important indicator for international investors, as it helps attract foreign direct investments. Maintaining this ranking reflects the success of the economic and financial policies adopted by the Indonesian government.
Over the years, Indonesia has implemented a series of economic reforms aimed at boosting economic growth. These reforms include improving infrastructure and streamlining administrative procedures for investors, contributing to an improved business climate in the country.
Impact & Consequences
Indonesia's maintenance of its status as a secondary emerging market enhances its ability to attract foreign investments. This classification could lead to increased capital flows into the country, contributing to economic growth. Additionally, Indonesia's exclusion from the watchlist reflects the stability of the financial market, which bolsters investor confidence.
The OJK expects these positive trends to continue as it works on implementing further reforms aimed at enhancing transparency and integrity in the financial market. These efforts will help improve the investment environment and attract more foreign investments.
Regional Significance
Indonesia is one of the largest economies in Southeast Asia, and its success in maintaining its status as a secondary emerging market could have a positive impact on economic relations with Arab countries. Arab companies may seek to explore investment opportunities in Indonesia, enhancing economic cooperation between the two sides.
In light of global economic challenges, Indonesia can serve as a model for Arab countries seeking to improve their investment environments and foster economic growth.