JAKARTA, thekabarnews.com—President Prabowo Subianto’s declaration that Indonesia would not bow to pressure from MSCI did not constitute a challenge to the global index provider, Financial Services Authority (OJK) chairwoman Friderica Widyasari Dewi said on Wednesday, Oct. 21.

Friderica said the government and the OJK remained committed to keeping Indonesia in MSCI’s emerging-market category. They would do so by strengthening the credibility, transparency and liquidity of the domestic capital market.

“No, not at all. There was no statement challenging MSCI,” Friderica told reporters at the Presidential Palace complex in Jakarta on Oct. 21.

Her remarks followed Prabowo’s address to a plenary Cabinet meeting earlier that day. Referring to MSCI’s scrutiny of the Indonesian stock market, the president said, “I only want to tell MSCI that the Indonesian nation fears no one and will not be intimidated.”

MSCI Inc., a United States-based index provider, announced on Oct. 15 that it had opened a consultation on potentially reclassifying its Indonesia indexes from emerging-market to standalone-market status.

The proposal is not a final decision. MSCI will accept market feedback until April 30, 2027, and plans to announce its conclusion by June 30, 2027. MSCI’s announcement said an existing freeze on certain index changes involving Indonesian securities would remain in place.

The index provider cited persistent opacity in shareholding structures and suspected coordinated trading. Moreover, MSCI also said market participants had not yet seen consistent evidence that the reforms announced by Indonesian authorities had produced a material impact.

OJK has acknowledged the concerns while stressing that its reform program predates the latest proposal.

The regulator said the measures include disclosure of shareholdings above 1 percent, more detailed investor classifications and reports identifying companies with highly concentrated ownership. In addition, authorities are preparing to raise the minimum free-float requirement to 15 percent.

Friderica said Prabowo supported those changes and that the Indonesia Stock Exchange had maintained communication with MSCI. OJK would continue pursuing reform as a domestic priority rather than merely responding to one index company, she added.

“We are carrying out improvements not because of one particular global index provider, but because, since January, we have intended—under the President’s direction—to address shortcomings in integrity, transparency and liquidity,” she said.

The regulator maintains that Indonesia’s expanding investor base and corporate fundraising activity demonstrate the market’s underlying capacity.

OJK recorded 32.17 million capital-market investors at the end of September 2026, an increase of 57.96 percent since the beginning of the year. Public offerings raised Rp186.03 trillion (US$11.1 billion) over the same period, according to OJK’s September assessment.

Friderica said she had briefed Prabowo on the latest market conditions during their meeting at the palace.

“We reported to the President on the current progress, the performance of listed companies in the second quarter of 2026, the structure of our capital market and all the latest developments,” she said.

Whether Indonesia retains its emerging-market classification will ultimately depend on evidence that the reforms improve market governance and price formation.

Continued engagement with MSCI may clarify the standards, but consistent implementation and credible enforcement will determine the outcome.