Jeffrey Hendrick, the interim CEO of the Indonesia Stock Exchange (IDX), highlighted the importance of continuous communication with global index providers, including MSCI, as part of efforts to enhance the Indonesian financial market and attract global investments. This statement was made during a press conference in the Indonesian capital, Jakarta, where he pointed out the significance of obtaining feedback from global investors to improve market performance.
Hendrick clarified that the Indonesia Stock Exchange will continue to hold meetings with MSCI, with the last meeting taking place on April 16, 2026. He expressed appreciation for the recognition provided by MSCI regarding four proposals for reforming the Indonesian financial market, reflecting the progress made in this area.
Event Details
In a related context, MSCI announced on April 20, 2026 its acknowledgment of the efforts made by financial authorities in Indonesia, including the Financial Services Authority (OJK) and the Indonesia Stock Exchange, in improving transparency in the financial market. However, MSCI is still evaluating the effectiveness of the data sources used in the market, specifically regarding the free float index and investment assessments.
MSCI also confirmed that it will continue to freeze all increases in the Foreign Inclusion Factor (FIF) and the number of shares (NOS), in addition to freezing the addition of new components to investable market indices. This is part of maintaining market stability and ensuring the effectiveness of assessments.
Background & Context
Historically, the Indonesia Stock Exchange has faced several challenges related to attracting foreign investments, especially amid global economic changes. MSCI is one of the leading global index providers and plays a crucial role in determining emerging market ratings, which directly impacts investment flows.
As the largest economy in Southeast Asia, Indonesia aims to enhance its position in global financial markets by improving transparency and compliance with international standards. This comes at a time when many developing countries are seeking to attract foreign direct investments.
Impact & Consequences
These steps by the Indonesia Stock Exchange and index providers are seen as a positive move towards improving the investment environment. These reforms are expected to increase confidence among foreign investors, which may contribute to boosting investment flows into Indonesia.
However, the biggest challenge remains how to handle data and information related to high ownership of shares, as MSCI seeks to ensure that markets are transparent and investable. Improving these aspects could lead to Indonesia being reclassified from an emerging market to a developed market in the future.
Regional Significance
Indonesia is one of the largest economies in the Islamic world, and its success in enhancing the financial market has a positive impact on Arab countries. The Indonesian experience could serve as a model for Arab nations seeking to improve their investment environments.
Furthermore, strengthening relations between Indonesia and Arab countries in the field of investment could contribute to achieving strong economic partnerships, benefiting both sides.